When auditors become aware of noncompliance with a law or regulation committed byclient personnel, the primary reason that the auditors should obtain a better understanding ofthe nature of the act is toa. Recommend remedial actions to the audit committee.b. Evaluate the effect of the noncompliance on the financial statements.c. Determine whether to contact law enforcement officials.d. Determine whether other similar acts could have occurred.
When auditors become aware of noncompliance with a law or regulation committed byclient personnel, the primary reason that the auditors should obtain a better understanding ofthe nature of the act is toa. Recommend remedial actions to the audit committee.b. Evaluate the effect of the noncompliance on the financial statements.c. Determine whether to contact law enforcement officials.d. Determine whether other similar acts could have occurred.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When auditors become aware of noncompliance with a law or regulation committed by
client personnel, the primary reason that the auditors should obtain a better understanding of
the nature of the act is to
a. Recommend remedial actions to the audit committee.
b. Evaluate the effect of the noncompliance on the financial statements.
c. Determine whether to contact law enforcement officials.
d. Determine whether other similar acts could have occurred.
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