Limiting Public Reporting in Attestation Engagements:

Government auditing standards allow auditors to limit public reporting in rare cases, such as when disclosing certain information could compromise sensitive or ongoing legal proceedings.

The goal is to protect the integrity of investigations or legal actions while maintaining transparency where possible.

Explanation of Answer Choices:

A. Auditors detect material fraud: Auditors are required to report material fraud to appropriate authorities, not limit reporting unless legal proceedings are affected.

B. Audit report would compromise ongoing legal proceedings: Correct. This is a valid reason to limit public reporting under auditing standards.

C. Auditor detects non-compliance with provisions of law: Non-compliance must be disclosed unless legal considerations warrant confidentiality.

D. Entity management fails to satisfy legal requirements: This would typically be reported, not withheld.

References:

GAO,Government Auditing Standards (Yellow Book).

AICPA,Attestation Standards and Public Reporting Guidance.