Which of the Following Best Describes a Portion of the Auditors

question 14

Multiple Choice

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.

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Definitions:

Ledger

A comprehensive collection of accounts that records all financial transactions of a business, serving as the principal book for accounting.

Trial Balance

An accounting report that lists the balances of all ledger accounts to ensure that debits equal credits, used for internal checks.

Owner's Drawings

Owner's disbursements from a business in either a sole proprietorship or partnership for personal expenditures.

Salaries and Wages Expense

The total amount spent by a business on its employees' salaries and wages during a specific period.