When the Auditor Knows That an Illegal Act Has Occurred

question 112

Multiple Choice

When the auditor knows that an illegal act has occurred, the auditor must:

• A) report it to the proper governmental authorities.
• B) consider the effects on the financial statements, including the adequacy of disclosure.
• C) withdraw from the engagement.
• D) issue an adverse opinion.

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Definitions:

Health Care Provider

A professional who offers preventive, curative, promotional, or rehabilitative health care services in a systematic way to individuals, families, or communities.

12-Lead ECG

A test that records the electrical activity of the heart from 12 different angles, used to diagnose various heart conditions.

Patient Chart

A comprehensive record of a patient’s medical history, treatment plans, and progress notes maintained by healthcare providers.

Unexpected Outcomes

Results or effects that were not anticipated or planned for in a particular scenario or process.