When the auditor knows that an illegal act exists he should:
A) consider the adequacy of disclosures.
B) modify the audit report.
C) consider the effects on the financial statements.
D) all of the above

Question

Quizplus · Accepted Answer

When the auditor knows of an illegal act, they should consider the adequacy of disclosures, modify the audit report, and consider the effects on the financial statements. This is because the illegal act may have an impact on the financial statements and the users' decision-making process, and the auditor has a responsibility to ensure that this information is properly disclosed and reported.

When the Auditor Knows That an Illegal Act Exists He