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The auditor's responsibility for uncovering direct-effect illegal acts is the same as for fraud.

A) True
B) False

1 Answer

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Final answer:

The auditor's responsibility for uncovering direct-effect illegal acts is not the same as for fraud.

Step-by-step explanation:

The statement in the question is False. The auditor's responsibility for uncovering direct-effect illegal acts and fraud is not the same.

Direct-effect illegal acts refer to violations of laws and regulations that directly impact the financial statements, such as theft, embezzlement, or bribery. Auditors have a responsibility to detect and report direct-effect illegal acts.

On the other hand, fraud involves intentional misrepresentation or deception to deceive others for personal gain. While auditors have a responsibility to detect and report fraud, it is not the same as their responsibility for direct-effect illegal acts.