With respect to illegal acts, the auditor's responsibility is to:
A) be aware of the possibility that illegal acts may have occurred.
B) design the audit to provide reasonable assurance of detecting illegal acts that are material to the financial report.
C) plan the audit to search for illegal acts that could be material to the financial report.
D) rely on the client's solicitor to identify illegal acts that should be disclosed.

Question

Quizplus · Accepted Answer

Auditors are responsible for being aware of the possibility of illegal acts and considering their impact on the financial statements, but they are not required to specifically design or plan audits to detect illegal acts unless they have a direct and material effect on the financial statements.

With Respect to Illegal Acts, the Auditor's Responsibility Is To