When an auditor believes that an illegal act may have occurred, the first step he or she should take is to gather additional evidence to determine the extent of the illegality and if there is a direct impact on the financial statements.

Question

Quizplus · Accepted Answer

This is the correct procedure for an auditor when they suspect an illegal act may have occurred. They need to gather additional evidence to determine if there is a direct impact on the financial statements before taking any further actions.

When an Auditor Believes That an Illegal Act May Have