When Dealing with Laws and Regulations That Do Not Have

Multiple Choice

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

A) should inquire of management about whether the entity is in compliance with such laws and regulations.
B) has no responsibility to determine if any violations of these laws has occurred.
C) must report all violations, including inconsequential violations, to the audit committee.
D) should perform the same procedures as for violations having a direct effect on the financial statements.