Which of the following information that comes to an auditor's attention most likely would raise a question about the occurrence of illegal acts?
A)The exchange of property for similar property in a nonmonetary transaction.
B)The discovery of unexplained payments made to government employees.
C)The presence of several difficult-to-audit transactions affecting expense accounts.
D)The failure to develop adequate procedures that detect unauthorized purchases.

Question

Quizplus · Accepted Answer

The discovery of unexplained payments made to government employees is a red flag for illegal acts, such as bribery or kickbacks, and would likely raise concern for an auditor. Choices A, C, and D may raise other audit concerns, but do not necessarily indicate the occurrence of illegal acts.

Which of the Following Information That Comes to an Auditor's