An Auditor Discovers a Likely Fraud During an Audit but Concludes

An auditor discovers a likely fraud during an audit but concludes that the overall effect of the fraud is not sufficiently material to affect the audit opinion. The auditor should probably:

A) disclose the fraud to the appropriate level of the client's management.
B) disclose the fraud to appropriate authorities external to the client.
C) discuss with the client the additional audit procedures that will be needed to identify the exact amount of the fraud.
D) modify the audit program to include tests specifically designed to identify the fraud and its impact on the financial statements.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free