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:

Legal Memorandum

A document used in legal practice to analyze and summarize key facts and legal arguments for use in briefs, motions, and other legal documents.

Statement Of Facts

A detailed description of all the important facts in a legal document or proceeding, without argument or bias.

Conclusion

Conclusion refers to the end or finish of an event, process, or text, often summarizing the main points or outcomes.

Legalese

A specialized language filled with legal terms and phrases, often found in legal documents and used by professionals in the legal field.