An Auditor Who Finds That the Client Has Committed an Illegal

Multiple Choice

An auditor who finds that the client has committed an illegal act would be most likely to withdraw from the engagement when the:

A) illegal act affects the auditor's ability to rely on management representations.
B) illegal act has material financial report implications.
C) illegal act has received widespread publicity.
D) auditor cannot reasonably estimate the effect of the illegal act on the financial report.