When an auditor believes that an illegal act may have occurred, the first step he or she should take is to inquire of management at a level above those likely to be involved in the potential illegal act.

Question

Quizplus · Accepted Answer

This is the correct initial step for an auditor to take when they suspect a possible illegal act. By inquiring of management at a higher level, the auditor can gain more information about the situation and determine whether further action, such as reporting to regulatory authorities, is necessary.

When an Auditor Believes That an Illegal Act May Have