Which of the Following Is Not an Inherent Limitation in an Auditor's

question 120

Multiple Choice

Which of the following is not an inherent limitation in an auditor's ability to detect material misstatements relating to a client's compliance with laws and regulations?

• A)Laws and regulations often relate to operational issues within the entity that do not necessarily relate to the financial statements,so the information systems relating to financial reporting may not capture noncompliance.
• B)The legal implications of noncompliance are ultimately a matter for legal authorities to resolve,and are not a matter about which the auditor can resolve.
• C)Management may act to conceal noncompliance,or may override controls,or may intentionally misrepresent facts to the auditor.
• D)Auditors are not required to consider the applicable legal and regulatory frameworks that apply to the entity.

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Definitions:

Generations

Periods of time, usually considered to be about 30 years, that separate birth cohorts, leading to differing attitudes and values among groups.

Wage Gap

The difference in average earnings between different groups in the workforce, particularly seen in the disparity between men and women's earnings.

Rich And Poor

Terms that describe the economic status of individuals or groups, indicating a significant disparity in wealth and resources.

Intangible Benefits

Non-physical advantages that cannot be easily quantified, but significantly affect performance or satisfaction.