Auditing standards recognize that there are inherent limitations in an auditor's ability to detect material misstatements relating to the entity's compliance with laws and regulations.

Question

Quizplus · Accepted Answer

Auditing standards acknowledge that there may be restrictions on an auditor's ability to identify non-compliance with laws and regulations, such as the possibility of management concealment or collusion, limited funding for investigative processes or legislative changes.

Auditing Standards Recognize That There Are Inherent Limitations in an Auditor's