An Auditor Discovers a Likely Fraud During an Audit, but Concludes

question 15

Multiple Choice

An auditor discovers a likely fraud during an audit, but concludes that its effects, if any, could not be material enough to affect the auditor's opinion. The auditor should:

• A) perform additional audit procedures to determine whether fraud has occurred and, if so, the amount thereof.
• B) report the finding to the appropriate level of the client with the recommendation that it be pursued to a conclusion.
• C) notify the proper authorities.
• D) note in the working papers that the amount is immaterial and that no further action is required.

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Definitions:

Adenosine Receptor Sites

Specific cellular locations where adenosine can bind, influencing various physiological processes.

Caffeine

A stimulant found in coffee, tea, chocolate, and some medications, known for its effects on increasing alertness and reducing fatigue.

Excitatory Neurotransmitters

Chemical substances released by neurons to transmit signals across synapses, promoting the firing of action potentials in receiving neurons, thus facilitating brain and nervous system activity.

Nervous System

is the network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating its actions and sensory information.