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Flashcards in Compliance with Laws and Regulations Deck (6)
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1

Who is responsible for ensuring that the entity's operations are conducted in accordance with applicable laws and regulations?

Management and those charged with governance

2

Who is responsible for obtaining reasonable assurancce that the financial statements are free of material misstatement due to noncompliance with laws and regulations?

Auditor

3

What is the auditor not responsible for when dealing with compliance with laws and regulations?

Preventing noncompliance and being expected to detect noncompliance with all laws and regulations

4

When obtaining an understanding of the entity and its environment, the auditor should obtain an understanding of?

Legal and regulatory framework and how the entity is complying with that framework

5

What should an auditor do when he/she suspects that noncompliance may exist?

Auditor should discuss the matter with management at least one level above those suspected of noncompliance and when appropriate, those charged with governance.

6

A duty to disclose outside the entity for reporting to regulatory and enforcement authorities may exist?

Response to inquiries from an auditor to a predecessor auditor, court order, and assistance from a government agency