Problem

An auditor who discovers that client employees have committed an illegal act that has a ma...

An auditor who discovers that client employees have committed an illegal act that has a material effect on the client’s financial statements most likely would withdraw from the engagement if

A. The noncompliance is a violation of generally accepted accounting principles.

B. The client does not take the remedial action that the auditor considers necessary.

C. The illegal act was committed during a prior year that was not audited.

D. The auditor has already assessed control risk at the maximum level.

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