If an auditor discovers that a suspected illegal act involving financialstatement preparation occurred at a client,the auditor has a duty to:
A) Never inform management to prevent management from potentially engaging in a cover-up
B) Inform management, unless the auditor suspects that management is involved
C) Inform the company's Audit Committee
D) Determine if key client financial personnel were involved in the misconduct

Question

Quizplus · Accepted Answer

The auditor has a duty to inform the company's Audit Committee of any suspected illegal acts involving financial statement preparation.

If an Auditor Discovers That a Suspected Illegal Act Involving