Multiple Choice
A PA's audit client is a small charity which funds development projects in a small foreign country.Most of its donations come in the form of cash, with tax receipts issued to the donors.Included in the cash receipts are weekly donations by one person, Mr.X, whose last
Name is easily identifiable as coming from that foreign country.Some of these cash donations exceed $10,000.The PA once asked about Mr.X and accepted as an answer that Mr.X was a wealthy entrepreneur but the PA has done no other work.
A) Assuming the PA has performed all other necessary and appropriate procedures, he may provide a clean opinion.
B) Assuming the PA does no further investigation of this matter, the PA may be considered willfully blind and complicit in an illegal act.
C) The PA may be associated with misleading information and should withdraw from the audit.
D) The PA should try to count the cash as it comes in in order to avoid issuing a scope limitation report.
Correct Answer:
Verified
Correct Answer:
Verified
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