Auditing standards require the auditor to communicate all management frauds and illegal acts to the audit committee
A) only if the act is immaterial.
B) only if the act is material.
C) only if the act is highly material.
D) regardless of materiality.

Question

Quizplus · Accepted Answer

Auditing standards require the auditor to communicate all management frauds and illegal acts to the audit committee regardless of materiality, as these may have a significant impact on the financial statements and the overall integrity of the organization. It is important for the audit committee to be made aware of these acts to take appropriate action and mitigate any potential risks.

Auditing Standards Require the Auditor to Communicate All Management Frauds