Question: An auditor who discovers that client employees have committed an illegal act that has a material effect on the clients financial statements most likely would

An auditor who discovers that client employees have committed an illegal act that has a material effect on the client’s financial statements most likely would withdraw from the engagement if

a. The illegal act is a violation of generally accepted accounting principles.

b. The client does not take the remedial action that the auditor considers necessary.

c. The illegal act was committed during a prior year that was not audited.

d. The auditor has already assessed control risk at the maximum level.

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