An Auditor Who Finds That the Client Has Committed an Illegal

question 40

Multiple Choice

An auditor who finds that the client has committed an illegal act would be most likely to withdraw from the engagement when the:

• A)illegal act affects the auditor's ability to rely on management representations.
• B)illegal act has material financial report implications.
• C)illegal act has received widespread publicity.
• D)auditor cannot reasonably estimate the effect of the illegal act on the financial report.

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Definitions:

Conventional

Pertaining to common practices, methods, or standards accepted by a large group or society.

Agentic Professions

Occupations that are associated with getting things accomplished.

Communal

Pertaining to or shared by the members of a community; often refers to resources or responsibilities held in common.

Fraternal

Pertaining to brothers; often used to describe twins who are born from two separate eggs fertilized by two different sperm cells, and thus are not genetically identical.