An Auditor Who Discovers That a Client's Employees Have Paid

Multiple Choice

An auditor who discovers that a client's employees have paid small bribes to public officials most likely would withdraw from the engagement if the:

A) Client receives financial assistance from a federal government agency.
B) Audit evidence that is necessary to prove that the illegal acts were committed does not exist.
C) Employees' actions affect the auditor's ability to rely on management's representations.
D) Notes to the financial statements fail to disclose the employees' actions.