in reporting under government auditing standards an auditor most likely would be req 602477

In reporting under Government Auditing Standards, an auditor most likely would be required to communicate management’s misappropriation of assets directly to a federal inspector general when the fraudulent activities are

1. Concealed by management by circumventing specific internal controls designed to safeguard those assets.
2. Reported to the entity’s governing body and the governing body fails to make a required report to the federal inspector general.
3. Accompanied by fraudulent financial reporting that results in material misstatements of asset balances.
4. Perpetrated by several levels of management in a scheme that is likely to continue in future years.