(solution) (B) The requirement is to identify a reason why audits cannot reasonably be expected to bring all…

(solution) (B) The requirement is to identify a reason why audits cannot reasonably be expected to bring all…

(B) The requirement is to identify a reason why audits cannot reasonably be expected to bring all illegal acts to the auditor’s attention. Answer (B) is correct because illegal acts relating to the operating aspects of an entity are often highly specialized and complex and often are far removed from the events and transactions reflected in financial statements.