An Indirect Effect Is an Audit Situation in Which Noncompliance

question 21

Multiple Choice

An indirect effect is an audit situation in which noncompliance with laws and regulations ________ (choose two options) .

• A)does not have an explicit impact on amounts and disclosures in the financial statements
• B)could require the creation of a contingent liability or an additional disclosure
• C)has an explicit impact on amounts and disclosures in the financial statements
• D)does not require the creation of a contingent liability or an additional disclosure

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Definitions:

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