Which of the Following Statements Best Describe the Auditors' Responsibilities

question 21

Multiple Choice

Which of the following statements best describe the auditors' responsibilities concerning illegal acts?

• A)Auditors must detect and report illegal acts to the appropriate level of authority.
• B)Auditors must consider suspicions of illegal acts that may directly or indirectly affect the financial statements or their assessment of management integrity.
• C)Auditors must ensure all illegal acts are detected and reported to those charged with governance.
• D)Auditors have no responsibility regarding illegal acts,as management is ultimately responsible for them.

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Definitions:

Unique Risk

Unique risk, also known as unsystematic risk, is the risk associated with individual assets, specific to a company or industry, which can be reduced through diversification.

Large Number

A numerical value that is significantly larger than those typically encountered in everyday life or simple calculations, often used in mathematical and scientific contexts.

Assets

Resources owned by a company or individual, having economic value and expected to provide future benefits.

Market Risk Factor

Elements or variables that affect the performance of investments in the stock market, such as economic developments or changes in interest rates.