When the auditor suspects that fraud may be present, SAS No. 99 requires the auditor to:
A) terminate the engagement with sufficient notice given to the client.
B) issue an adverse opinion or a disclaimer of opinion.
C) obtain additional evidence to determine whether material fraud has occurred.
D) re-issue the engagement letter.

Question

Quizplus · Accepted Answer

When the auditor suspects fraud, SAS No. 99 requires the auditor to obtain additional evidence to determine whether material fraud has occurred. It does not require the termination of the engagement, issuing an adverse or disclaimer of opinion, or re-issuing the engagement letter. The goal is to gather sufficient evidence to make a determination about whether the financial statements are materially misstated due to fraud.

When the Auditor Suspects That Fraud May Be Present, SAS