If an auditor encounters significant risks at the client, the auditor should do all of the following except:
A)inform the SEC.
B)perform extended procedures.
C)include more experienced auditors on the engagement.
D)perform tests closer to year end.

Question

Quizplus · Accepted Answer

While the auditor should inform the client about any significant risks and perform extended procedures and more tests closer to year end, they are not required to inform the SEC unless there is a material misstatement or fraudulent activity that could affect the financial statements of the client. The SEC should only be informed in cases of severe issues that could affect investors and the public trust.

If an Auditor Encounters Significant Risks at the Client, the Auditor