If an Auditor Discovers That a Suspected Illegal Act Involving

question 15

Multiple Choice

If an auditor discovers that a suspected illegal act involving financialstatement preparation occurred at a client,the auditor has a duty to:

• A) Never inform management to prevent management from potentially engaging in a cover-up
• B) Inform management, unless the auditor suspects that management is involved
• C) Inform the company's Audit Committee
• D) Determine if key client financial personnel were involved in the misconduct

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Definitions:

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Physical or digital records that contain information or data, serving various purposes such as legal evidence, transaction records, or personal identification.

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ATM Card

A plastic card issued by a bank that allows the cardholder to withdraw cash from automated teller machines.

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