Which of the following is the auditor least likely to do when aware of an illegal act?
A)Discuss the matter with the client's legal counsel.
B)Obtain evidence about the potential effect of the illegal act on the financial statements.
C)Contact the local law enforcement officials regarding potential criminal wrongdoing.
D)Consider the impact of the illegal act on the relationship with the company's management.

Question

Quizplus · Accepted Answer

The auditor should not contact the local law enforcement officials regarding potential criminal wrongdoing. While the auditor has a responsibility to report illegal acts to the appropriate parties, they should generally not take action on their own before discussing the matter with the client's legal counsel and considering the potential impact on the audit engagement. It is important to maintain independence and objectivity, and contacting law enforcement officials could potentially jeopardize these principles.

Which of the Following Is the Auditor Least Likely to Do