As the impact from noncompliance is further removed from affecting the financial statements, the less likely the auditor is to become aware of or recognize noncompliance when auditing the financial statements.

Question

Quizplus · Accepted Answer

As the impact of noncompliance becomes more remote from affecting the financial statements, it becomes more difficult for the auditor to identify such noncompliance during the audit, and they may be less likely to become aware of it.

As the Impact from Noncompliance Is Further Removed from Affecting