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:

Income

Earnings received by an individual or entity in exchange for labor or services, from investments, or through other sources.

Living Standards

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Industrial Democracy

A form of organizational governance in which workers have a direct or representative role in decision-making processes.

Productivity

A measure of the efficiency of production, often quantified as the rate of output per unit of input.