When the Auditor Becomes Aware of or Suspects Noncompliance with Laws

question 110

Multiple Choice

When the auditor becomes aware of or suspects noncompliance with laws and regulations,

• A) the auditor should evaluate the effects of the noncompliance on other aspects of the audit.
• B) the auditor should discuss the matter with management at a level above those suspected of the noncompliance.
• C) the auditor should obtain additional information to evaluate the possible effects on the financial statements.
• D) all of the above.

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Definitions:

Detached

Emotionally removed or disengaged, displaying a lack of emotional involvement.

Caregiver Burnout

Condition of physical, mental, and emotional exhaustion affecting adults who provide continuous care for sick or aged persons.

Elderly

A term referring to individuals who are significantly advanced in age, typically those considered to be past middle age.

Guilt

A negative emotional state that occurs when an individual believes they have caused harm or violated their moral or social standards.