When Reporting Identified or Suspected Noncompliance

question 59

Multiple Choice

When reporting identified or suspected noncompliance,

• A) the auditor must report inconsequential noncompliance to the audit committee.
• B) the auditor should communicate all material noncompliance matters to those charged with governance.
• C) any intentional noncompliance must be reported to local law enforcement.
• D) all noncompliance, whether material or not, must result in a disclaimer of opinion.

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Definitions:

Fifth-Wheel Height

The vertical measurement from the ground to the fifth-wheel coupling device on a trailer, important for hitching and stability.

Industry Standard

Typically accepted criteria or practices within an industry that help ensure quality, safety, and efficiency.

Refrigerated Trailer

A type of trailer equipped with a refrigeration unit, used for transporting perishable goods at controlled temperatures.

Duct-Type Floor

A flooring system incorporating ducts for the purpose of air distribution, commonly used in vehicles or buildings for heating or cooling.