Which of the following statements is true regarding an accountant's consideration of fraud/illegal acts in compilation and review engagements?

Question

Quizplus · Accepted Answer

Choice "A" is correct. The accountant is not required to specifically assess fraud risk or to perform procedures designed to detect material misstatements due to fraud or illegal acts. Choice "B" is incorrect. Inconsequential instance of fraud or illegal acts need not be reported to management. Choice "C" is incorrect. The accountant should report to an appropriate level of management any evidence or information that comes to his or her attention indicating that fraud or an illegal act may have occurred. Choice "D" is incorrect. Information indicating that fraud or an illegal act may have occurred should be reported to an appropriate level of management, but it need not be in writing. Oral communication to management should be documented.

Which of the Following Statements Is True Regarding an Accountant's