An Auditor Who Discovers That Client Employees Have Committed an Illegal

Multiple Choice

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 noncompliance 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.