Question

Auditors have a higher degree of responsibility for detecting direct-effect illegal acts than indirecteffect

illegal acts.
A) True
B) False

Answer 1

False. Auditors have a higher degree of responsibility for detecting indirect-effect illegal acts than direct-effect illegal acts.

Step-by-step explanation:

False

Auditors have a higher degree of responsibility for detecting indirect-effect illegal acts than direct-effect illegal acts. As auditors, their main responsibility is to evaluate and assess the financial statements and records of an organization. They are typically more focused on detecting fraudulent activities, misstatements, and non-compliance with laws and regulations, which are more likely to be reflected in the financial records indirectly.

For example, auditors may look for signs of revenue recognition manipulation, improper expense reporting, or asset overvaluation, which are all indirect-effect illegal acts. On the other hand, direct-effect illegal acts, such as embezzlement or bribery, may not be detected solely through financial records and may require more specialized investigation techniques.