If Legal or Regulatory Standards Prohibit Conformance with Certain Parts

question 71

Multiple Choice

If legal or regulatory standards prohibit conformance with certain parts of The IIA's Standards, the auditor should do which of the following?

• A) Conform with all other parts of The IIA's Standards and provide appropriate disclosures.
• B) Conform with all other parts of The IIA's Standards; there is no need to provide appropriate disclosures.
• C) Continue the engagement without conforming with the other parts of The IIA's Standards.
• D) Withdraw from the engagement.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

FVTOCI

Fair Value Through Other Comprehensive Income, a classification under IFRS for financial assets that are valued at fair value with changes recognized in other comprehensive income rather than profit or loss.

IFRS 9

An International Financial Reporting Standard that addresses the accounting for financial instruments, specifying how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items.

Other Comprehensive Income

Income that is not part of net income, including unrealized gains and losses on certain types of investments, which is recorded directly in equity.