Which of the following statements best describes auditors' responsibility for detecting a client's noncompliance with a law or regulation?
A) The responsibility for detecting noncompliance exactly parallels the responsibility for errors and fraud.
B) Auditors must design tests to detect all material noncompliance that indirectly affect the financial statements.
C) Auditors must design tests to obtain reasonable assurance that all noncompliance with direct material statement effects are detected.
D) Auditors must design tests to detect all noncompliance that directly affect the financial statements.

Question

Quizplus · Accepted Answer

Auditors are responsible for obtaining reasonable assurance that noncompliance with laws and regulations that have a direct and material effect on the financial statements is detected. They are not required to detect all noncompliance, especially those with indirect effects.

Which of the Following Statements Best Describes Auditors' Responsibility for Detecting