Moor, CPA, discovers a likely fraud during an audit but concludes that its effects, if any, could not be so material as to affect the opinion. Moor most likely should
Report the finding to the appropriate representatives of the client with the recommendation that it be pursued to a conclusion.
The auditor should refer the matter of an immaterial fraud to an appropriate level of management. The appropriate level of management ordinary is at least one level above the highest level involved. However, any fraud involving (1) management, (2) employees significantly involved in internal control, or (3) others when fraud materially misstates the financial statements, is reported to those charged with governance.