Question

When an auditor believes that an illegal act may have occurred, the auditor should first:

A) inquire of management at a level above those likely to be involved.
B) consult with legal counsel of others knowledgeable about the illegal acts.
C) accumulate additional evidence.
D) withdraw from the engagement.

Answer 1

When an auditor believes that an illegal act may have occurred, the first step is to consult with legal counsel or others knowledgeable about the illegal acts.

Step-by-step explanation:

When an auditor believes that an illegal act may have occurred, the auditor should first consult with legal counsel or others knowledgeable about the illegal acts. This is important to ensure that the auditor understands the legal implications and the appropriate course of action. By seeking advice from experts, the auditor can make an informed decision on how to proceed.