Question: An auditor concludes that client management has been involved in noncompliance with a certain law and that this fact has not been properly accounted for
An auditor concludes that client management has been involved in noncompliance with a certain law and that this fact has not been properly accounted for or disclosed. The auditor should withdraw from the engagement if the:
A Noncompliance has a material effect on the financial statements.
B Auditor is unable to obtain sufficient appropriate audit evidence about the noncompliance.
C Noncompliance is serious enough to result in monetary fines for the management involved in noncompliance.
D Client refuses to accept the auditor's report as modified for the noncompliance.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
