What happens when the auditor becomes aware of possible illegal acts that have an indirect effect on the financial statements?
Answer to relevant QuestionsWhat are the audit concerns about related party transactions? How do these concerns affect the testing of operations of controls?What are the next steps when audit tests indicate a problem with the operating effectiveness of a control? What are the criteria for evaluating the seriousness of a control deficiency?What is the benefit of an integrated test facility? What is the risk to the client’s records?How do the working trial balance, lead schedules, and detailed work papers articulate?Sarah works in a clothing boutique whose return policy requires a manager to authorize any returns or exchanges. While auditing the boutique you interview Sarah and learn that the weekend manager has given Sarah and several ...
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