Auditors have a higher degree of responsibility for detecting illegal acts that have a direct effect on the financial statements than illegal acts that do not have a direct effect on the financial statements.

Question

Quizplus · Accepted Answer

Auditors have a responsibility to detect and report any illegal acts with a direct effect on the financial statements, as these can impact the overall accuracy and reliability of the financial statements. However, they also have a responsibility to identify and report illegal acts that may not have a direct effect on the financial statements but could still impact the operations or reputation of the company.

Auditors Have a Higher Degree of Responsibility for Detecting Illegal