Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 66

When auditors become aware of noncompliance with a law or regulation committed by client personnel, the primary reason that the auditors should obtain a better understanding of the nature of the act is to
A) Recommend remedial actions to the audit committee.
B) Evaluate the effect of the noncompliance on the financial statements.
C) Determine whether to contact law enforcement officials.
D) Determine whether other similar acts could have occurred.