Question

When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor

should:
A) include audit procedures which have a strong probability of detecting illegal acts.
B) still include some audit procedures designed specifically to uncover illegalities.
C) ignore the issue.
D) make inquiries of management regarding their policies for detecting and preventing illegal acts and
regarding their knowledge of violations, and then rely on normal audit procedures to detect errors,
irregularities, and illegalities.

Answer 1

When planning the audit, if there is no reason to believe that illegal acts exist, the auditor should make inquiries of management and rely on normal audit procedures.

Step-by-step explanation:

When planning the audit, if the auditor has no reason to believe that illegal acts exist, the auditor should make inquiries of management regarding their policies for detecting and preventing illegal acts and regarding their knowledge of violations, and then rely on normal audit procedures to detect errors, irregularities, and illegalities.

It is important for the auditor to gather information on the company's policies and management's awareness of any violations, as this may indicate the need for additional audit procedures. However, if there is no reason to believe that illegal acts exist, it is not necessary to include specific audit procedures designed to uncover illegalities.