An Auditor Discovers a Likely Fraud During an Audit, but Concludes

Multiple Choice

An auditor discovers a likely fraud during an audit, but concludes that its effects, if any, could not be material enough to affect the auditor's opinion. The auditor should:

A) perform additional audit procedures to determine whether fraud has occurred and, if so, the amount thereof.
B) report the finding to the appropriate level of the client with the recommendation that it be pursued to a conclusion.
C) notify the proper authorities.
D) note in the working papers that the amount is immaterial and that no further action is required.