In the audit of different clients, you encounter the following pertaining to illegal acts:

1. You are unable to determine the amounts associated with certain events or if, in fact, an act is illegal.

2. You conclude that an illegal act is material in amount and that it has been buried in miscellaneous deferred charges on the balance sheet.

3. You decide that an illegal act has occurred but you are unable to assess the potential consequences of the act.

4. The client's legal counsel is unable or unwilling to commit itself as to whether an act is illegal.

5. Top management refuses to take appropriate action concerning an illegal act that is not disclosed in the financial statement.

Required:

a. Indicate the modification that should be made in the auditor's report for each circumstance.

b. Explain the steps that can or should be taken by the auditor when he believes an illegal act has occurred.

c. Indicate the extent of public disclosure, if any, that should be made by the auditor for illegal acts.