When the auditor believes an illegal act may have occurred, it is necessary to:
A) consider accumulating additional evidence to determine if there is actually an illegal act.
B) inquire of management, at a level above those likely to be involved with illegality.
C) consult with the client's legal counsel.
D) do all three of the above.

Question

Quizplus · Accepted Answer

When an auditor believes an illegal act may have occurred, it is necessary to consider accumulating additional evidence to determine if there is actually an illegal act, inquire of management, at a level above those likely to be involved with illegality, and consult with the client's legal counsel. Doing all three options can help the auditor to gather more information and make a well-informed decision about how to proceed.

When the Auditor Believes an Illegal Act May Have Occurred