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 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 a high level.