Which of the Following Is the Auditor Least Likely to Do

question 46

Multiple Choice

Which of the following is the auditor least likely to do when aware of an illegal act?

• A)Discuss the matter with the client's legal counsel.
• B)Obtain evidence about the potential effect of the illegal act on the financial statements.
• C)Contact the local law enforcement officials regarding potential criminal wrongdoing.
• D)Consider the impact of the illegal act on the relationship with the company's management.

---

Definitions:

Liability

The state of being responsible for something, especially in terms of legal or financial obligations.

Unauthorized

Refers to actions taken without official permission or approval.

Personally Liable

Being personally responsible for fulfilling a legal obligation or paying off a debt, not limited to business or corporate liabilities.

Forge

To falsify something, especially a document, with the intent to deceive or defraud.