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When dealing with laws and regulations that donothave a direct effect on the financial statements, the auditor

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When dealing with laws and regulations that donothave a direct effect on the financial statements, the auditor

When dealing with laws and regulations that do not have a direct effect on the financial statements, the auditor

▸ should inquire of management about whether the entity is in compliance with such laws and regulations.

▸ has no responsibility to determine if any violations of these laws has occurred.

▸ must report all violations, including inconsequential violations, to the audit committee.

▸ should perform the same procedures as for violations having a direct effect on the financial statements.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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