5 Compliance with laws and regulations

Question 1

what is non-compliance

Answer 1

an act of omission by an entity intentional or unintentional

Question 2

what is mgt responsible for under compliance laws and regulations

Answer 2

ensuring that the entity’s operations are conducted in accordance with the laws and regulations

Question 3

what is the auditor’s responsibility

Answer 3

not responsible to detect or prevent

Question 4

when should the auditor report to those charged with goverenance

Answer 4

if mgt is involved …. auditor should communicate with an individual with higher authority

Question 5

when should an auditor report to enforcement

Answer 5

its not a part of auditor’s responsibility due to confidentiality

Question 6

On the Auditor report if there is a material effect on the financial statement …..

Answer 6

This is a GAAP issue

qualified or adverse opinion

Question 7

On the Auditor report if there is insufficient evidence

Answer 7

GAAS issue

qualified opinion or disclaimer

Question 8

On the Auditor report if there is a client response

Answer 8

GAAS

withdraw