Which of the following is the auditor least likely to do when aware of an illegal act?
A) discuss the matter with the client's legal counsel
B) obtain evidence about the potential effect of the illegal act on the financial statements
C) contact the local law enforcement officials regarding potential criminal wrongdoing
D) consider the impact of the illegal act on the relationship with the company's management

Question

Quizplus · Accepted Answer

Contacting law enforcement officials is not the auditor's role. Rather, the auditor should discuss the matter with the client's legal counsel and obtain evidence about the potential effect of the illegal act on the financial statements. It is also appropriate for the auditor to consider the impact of the illegal act on the relationship with the company's management.

Which of the Following Is the Auditor Least Likely to Do