An auditor may be required to disclose fraud outside the client entity in each one of the following situations except: A) in response to a court subpoena. B) to the SEC when the auditor has withdrawn from the engagement. C) to a successor auditor who makes inquiries in accordance with professional standards. D) to the GAO when the auditor has reported illegal acts to the audit committee. E) to a funding agency in accordance with audit requirements for entities that receive governmental financial assistance.

Question

Quizplus · Accepted Answer

Auditors are not required to disclose fraud to the GAO when they have reported illegal acts to the audit committee, as this is an internal matter unless specific legal or regulatory requirements dictate otherwise.

An Auditor May Be Required to Disclose Fraud Outside the Client