According to SAS 54, the auditor's responsibility for illegal acts having a direct and material effect on the determination of financial statement amounts is:
A) greater than for errors or fraud.
B) the same as it is for errors or fraud.
C) less than it is for errors or fraud.
D) different for direct-effect illegal acts and other types of illegal acts.
E) restricted to information that comes to his attention.

Question

Quizplus · Accepted Answer

The auditor's responsibility for illegal acts that have a direct and material effect on the determination of financial statement amounts is the same as it is for errors or fraud, according to SAS 54. This standard outlines that auditors should consider the risk of material misstatement due to either fraud or illegal acts in the same manner as they would for errors in the financial statements.

According to SAS 54, the Auditor's Responsibility for Illegal Acts