Which of the Following Statements Is Correct with Respect to the Auditor's

question 52

Multiple Choice

Which of the following statements is correct with respect to the auditor's responsibilities relative to the detection of indirect-effect illegal acts?

• A) The auditor has no responsibility for searching for indirect-effect illegal acts.
• B) The auditor has the same responsibility for searching for indirect-effect illegal acts as any other potential misstatement that may occur.
• C) Auditors have responsibility for searching for any illegal act, whether direct-effect or indirect-effect.
• D) Discovery of indirect-effect illegal acts is usually easier than discovery of fraud.

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Definitions:

Malaysia

A country located in Southeast Asia that comprises peninsular Malaysia and parts of the island of Borneo, known for its beaches, rainforests, and a mix of Malay, Chinese, Indian, and European cultural influences.

Prosimians

The suborder of primates that includes lemurs, lorises, and tarsiers.

Loris

A small, tree-dwelling primate with large eyes and a nocturnal lifestyle, found in Southeast Asia and parts of Africa.

Tarsier

A small, nocturnal primate found in Southeast Asia, known for its large eyes, elongated ankles, and ability to leap between trees.