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:

Similar Personalities

The degree to which individuals share the same traits, characteristics, and modes of behavior.

Role Confusion

The uncertainty felt by individuals who are unsure about their identity or future roles in society, often discussed in Erikson's stages of psychosocial development.

Weakening Immune System

A decrease in the effectiveness of the immune system, which reduces the body's ability to fight off infections and diseases.

Susceptible To Pneumonia

Having an increased vulnerability or tendency to develop pneumonia, an infectious disease affecting the lungs.