The auditor's responsibility for uncovering direct-effect illegal acts is the same as for errors and fraud.

Question

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The auditor's responsibility for uncovering direct-effect illegal acts is the same as for errors and fraud. This includes obtaining reasonable assurance through audit procedures and detecting material misstatements, whether caused by error, fraud, or direct-effect illegal acts. However, the auditor has additional responsibilities when it comes to indirect-effect illegal acts, such as evaluating whether they may have a material effect on the financial statements and considering whether disclosure is necessary.

The Auditor's Responsibility for Uncovering Direct-Effect Illegal Acts Is the Same