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An auditor generally should communicate illegal acts to those charged with governance
in all cases unless the act clearly has no significant effect.
only after the effect on the financial statements has been ascertained with reasonable certainty.
only after ascertaining with an attorney the legality of the act and estimating a likely range of
financial statement impact.
never; such communications should be communicated only with management directly.

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An auditor generally should communicate illegal acts to those charged.pdf

  • 1. An auditor generally should communicate illegal acts to those charged with governance in all cases unless the act clearly has no significant effect. only after the effect on the financial statements has been ascertained with reasonable certainty. only after ascertaining with an attorney the legality of the act and estimating a likely range of financial statement impact. never; such communications should be communicated only with management directly.