An auditor who discovers that a client's employees paid small bribes to municipal officials most likely would withdraw from the engagement if:
A)the payments violated the client's policies regarding the prevention of illegal acts.
B)the client receives financial assistance from a federal government agency.
C)documentation that is necessary to prove that the bribes were paid does not exist.
D)management fails to take the appropriate remedial action.

Question

Quizplus · Accepted Answer

The auditor would most likely withdraw from the engagement if management fails to take the appropriate remedial action upon discovering illegal acts such as bribery. This is because the failure of management to address illegal acts reflects poorly on the integrity of the management and the reliability of the financial statements, which are crucial for the auditor's assessment.

An Auditor Who Discovers That a Client's Employees Paid Small