Which of the following best describes a portion of the auditors' responsibility regarding noncompliance with laws by clients?
A)The auditors have a responsibility to discover all material noncompliance.
B)If audit procedures reveal noncompliance,the auditors should take appropriate actions.
C)If the auditors suspect noncompliance,they should conduct a legal audit of the company.
D)The auditors' responsibility for the detection of all noncompliance is the same as their responsibility regarding material misstatements due to errors and fraud.

Question

Quizplus · Accepted Answer

The auditors have a responsibility to design and perform audit procedures to obtain reasonable assurance that material noncompliance with laws and regulations is detected. If such noncompliance is revealed, the auditors should take appropriate actions, which may include communication with management, the audit committee, or regulatory agencies. However, the auditors are not responsible for discovering all noncompliance, and a legal audit is not a typical audit procedure. The auditors' responsibility for the detection of noncompliance is not equivalent to their responsibility for material misstatements due to errors and fraud, as noncompliance may not always result in material misstatements in the financial statements.

Which of the Following Best Describes a Portion of the Auditors