According to auditing standards, external auditors' responsibilities for indirect noncompliance do not include:
A)designing audit procedures to detect noncompliance in the absence of specific information brought to the auditors' attention.
B)performing audit procedures when specific information indicates that possible noncompliance may have a material indirect effect on financial statements.
C)considering the qualitative materiality of known and suspected noncompliance.
D)obtaining written management representations concerning the absence of violations of laws and regulations.

Question

Quizplus · Accepted Answer

External auditors are not responsible for designing audit procedures specifically to detect noncompliance unless there is specific information indicating potential noncompliance that could materially affect the financial statements. Their primary focus is on the financial statements' accuracy and compliance with the applicable financial reporting framework.

According to Auditing Standards, External Auditors' Responsibilities for Indirect Noncompliance