Final answer:
It is true that an audit generally provides no assurance that indirect-effect illegal acts will be detected, as audits focus on financial statement accuracy and not on uncovering indirect illegal activities not impacting the financial statements.
Step-by-step explanation:
The statement that an audit generally provides no assurance that indirect-effect illegal acts will be detected is true. An audit's main objective is to provide reasonable assurance over the financial statements' accuracy and compliance with accounting standards. Audits are primarily focused on financial statement fraud and errors. While an audit may uncover some forms of direct-effect illegal acts, such as fraud that have a direct financial impact on the financial statements, it is not designed to detect indirect-effect illegal acts that do not have a direct financial statement impact.
For instance, in the United States, despite the lowered likelihood of a citizen's taxes being audited, the primary goal of a tax audit is to ensure legal compliance and accuracy of tax filings, rather than uncovering indirect illegal activities. Audit procedures may incidentally uncover some illegal acts, but uncovering such acts is not within the scope of a standard audit engagement, and no assurance is given for their detection.