Which of the following is most correct with regard to the auditor's search of indirect-effect illegal acts that may have been committed by the client?
A) No reason to search unless there is sufficient evidence to believe they have occurred.
B) Same audit responsibility as the search for financial statement fraud.
C) Same audit responsibility as the search for misappropriated assets.
D) No reason to search as they would have an indirect effect on the financial statements.

Question

Quizplus · Accepted Answer

Auditors are not required to search for indirect-effect illegal acts unless there is sufficient evidence to suggest they may have occurred, as these acts do not directly affect the financial statements.

Which of the Following Is Most Correct with Regard to the Auditor's