Distinguish between illegal acts that are \"direct and material\" and those that are \"material but indirect.\" List five circumstances that may indicate that an illegal act has occurred

direct and material--tax laws that determine the amount of revenue recognized on FS
material but indirect--
five circumstances: unauthorized transactions, investigation by government agency, a payment of unusual fines, large payments for unspecified services to consultants or employees, large cash payments, unexplained payments to government officials, and failure to file tax returns.