When an Auditor Believes That an Illegal Act May Have

question 25

True/False

When an auditor believes that an illegal act may have occurred, the first step he or she should take is to gather additional evidence to determine the extent of the illegality.

---

Definitions:

Psychological Exchange

Refers to a transaction or interaction between individuals that involves emotional or cognitive considerations, often in the context of relationships or social behavior.

Economic Exchange

The process of trading goods, services, or both, involving the transfer of money or other valuables between parties.

Reciprocity Norm

A social norm that suggests individuals should repay, in kind, what another has provided or done for them.

Role Transference

A psychological phenomenon where an individual assumes the attitudes, behaviors, or roles of another group or person, often seen in marketing when consumers identify with brand personalities.