When Dealing with Laws and Regulations That Do Not Have

question 163

Multiple Choice

When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor

• A) should inquire of management about whether the entity is in compliance with such laws and regulations.
• B) has no responsibility to determine if any violations of these laws has occurred.
• C) must report all violations, including inconsequential violations, to the audit committee.
• D) should perform the same procedures as for violations having a direct effect on the financial statements.

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Definitions:

Cardiomyopathy

A group of diseases that affect the heart muscle, potentially leading to heart failure or other cardiac conditions.

Musculoskeletal

Pertaining to the muscles and the skeleton, especially relating to the system that supports the body and enables movement.

Nephrology

The branch of medicine that focuses on the diagnosis and treatment of kidney diseases.

Plural

The grammatical form used to denote more than one of a particular object or concept.