If an Auditor Discovers a Suspected Illegal Act Involving Financial

question 27

Multiple Choice

If an auditor discovers a suspected illegal act involving financial statement presentation occurred at a client,the auditor has a duty to:

• A) Consult with outside legal counsel to determine if the act is in fact illegal
• B) Not mention this suspected misconduct, unless the illegality of the act is, at minimum, determined to be probable
• C) Not mention this suspected misconduct, unless the resulting monetary liability can be determined with reasonable certainty
• D) Inform the company's Audit Committee

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Definitions:

Centers of Influence

Individuals or organizations that have a significant impact on the attitudes or behaviors of potential clients in a specific market.

Prospect Pool

A collection or database of potential customers or clients who might be interested in a company's products or services.

Contact Management File

A digital or physical repository where information about clients or potential clients, including contact details and interaction history, is stored and managed.

Center-of-Influence

Individuals or entities that have a significant impact on the opinions or decisions of a targeted group, often leveraged in marketing or networking strategies.