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Flashcards in Compliance with Laws and Regulations Deck (6)
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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


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



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


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


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.


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