According to Auditing Standards,external Auditors' Responsibilities for Indirect Noncompliance Do

question 32

Multiple Choice

According to auditing standards,external auditors' responsibilities for indirect noncompliance do not include

• A) Designing audit procedures to detect noncompliance in the absence of specific information brought to the auditors' attention.
• B) Performing audit procedures when specific information indicates that possible noncompliance may have an indirect material effect on financial statements.
• C) Considering the qualitative materiality of known and suspected noncompliance.
• D) Obtaining written management representations concerning the absence of violations of laws and regulations.

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Definitions:

Retailers

are businesses that sell goods or services directly to consumers for their personal, non-business use.

Freight Allowance

A discount or reimbursement provided by a seller to cover or reduce freight costs for the buyer.

Trade Promotion

Marketing efforts directed toward stimulating interest, demand, or purchase of products by end consumers or others in the sales channel, using techniques like discounts, special displays, or sponsorships.

Manufacturer's Warehouse

A storage facility owned or employed by manufacturers for storing their products before distribution.