Auditors should exercise professional judgment in planning the engagement by obtaining an understanding of the possible effects of fraud, illegal acts, or other noncompliance on the subject matter or assertion of the attestation engagement and by identifying and assessing any associated risks that could have a material effect on the attestation engagement.
The effects of fraud and illegal acts should be understood by auditors.
Auditors do not need to understand illegal activities.
a woman is having a picnic
The two ladies are having a conversation.
Their group is involved in joint ventures with Ford and Nynex.
People are outside driving varying modes of transportation.
A man is reading the Bible.
A man cuts down a tree.