When the Auditor Identifies or Suspects Noncompliance with Laws and Regulations

question 27

Multiple Choice

When the auditor identifies or suspects noncompliance with laws and regulations, the auditor

• A) should discuss the matter with those whom they believe committed the illegal act.
• B) should begin communication with the FASB in accordance with regulations.
• C) may disclaim an opinion on the basis of scope limitations if he or she is precluded by management from obtaining sufficient appropriate evidence.
• D) should withdraw from the engagement.

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Definitions:

Economic Outcomes

The results or consequences of economic activities, including growth, employment levels, and wealth distribution.

Context Affects

The influence of situational and environmental factors on perceptions, decisions, and behaviors.

Preferences

Individual tastes or desires that influence their choices among various goods, services, or outcomes.

Fewer Errors

A reduction in mistakes or inaccuracies, often resulting in improved efficiency, quality, or performance in various contexts.