When the auditor identifies or suspects noncompliance with laws and regulations,the auditor
A)should discuss the matter with those whom they believe committed the illegal act.
B)begin communication with the FASB in accordance with PCAOB regulations.
C)may disclaim an opinion on the basis of scope limitations if he is precluded by management from obtaining sufficient appropriate evidence.
D)should withdraw from the engagement.

Question

Quizplus · Accepted Answer

If the auditor identifies or suspects noncompliance with laws and regulations, they should discuss the matter with the appropriate level of management, ensure that the audit committee is informed if necessary, and obtain sufficient appropriate evidence to evaluate the potential financial statement effects. However, if management does not allow the auditor to obtain sufficient appropriate evidence, the auditor may disclaim an opinion on the basis of scope limitations. The remaining choices are not appropriate actions for the auditor to take.

When the Auditor Identifies or Suspects Noncompliance with Laws and Regulations,the