A PA's Audit Client Is a Small Charity Which Funds

question 26

Multiple Choice

A PA's audit client is a small charity which funds development projects in a small foreign country.Most of its donations come in the form of cash,with tax receipts issued to the donors.Included in the cash receipts are weekly donations by one person,Mr.X,whose last name is easily identifiable as coming from that foreign country.Some of these cash donations exceed $10,000.The PA once asked about Mr.X and accepted as an answer that Mr.X was a wealthy entrepreneur but the PA has done no other work.Which of the following statements is TRUE?

• A)Assuming the PA has performed all other necessary and appropriate procedures,he may provide a clean opinion.
• B)Assuming the PA does no further investigation of this matter,the PA may be considered willfully blind and complicit in an illegal act.
• C)The PA may be associated with misleading information and should withdraw from the audit.
• D)The PA should try to count the cash as it comes in order to avoid issuing a scope limitation report.

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Definitions:

Afferent Vessels

Blood vessels that carry blood toward a particular organ or tissue, often referring to the vessels entering an organ.

Efferent Vessels

Blood vessels or lymphatic vessels that carry fluid away from an organ or tissue, as opposed to afferent vessels that bring fluid to it.

Lymphatic Vessels

A network of conduits through which lymph, containing immune cells and waste, is transported.

Secondary Antibody

An antibody that binds to a primary antibody as part of a detection or purification method in biochemistry or microscopy.