The Auditor's Responsibility for the Detection of an Illegal Act

The auditor's responsibility for the detection of an illegal act is the same as the auditor's responsibility for the detection of an error when the illegal act:

A) creates a material contingent liability that must be disclosed.
B) involves financial matters such as embezzlement or violations of securities laws.
C) has a direct and material effect on the determination of a financial report amount.
D) has consequences material to the presentation and disclosure of financial position or operating results.