When an Auditor Becomes Aware of Possible Noncompliance by a Client

Multiple Choice

When an auditor becomes aware of possible noncompliance by a client, the auditor should obtain an understanding of the nature of the act to:

A) evaluate the effect on the financial statements.
B) determine the reliability of management's representations.
C) consider whether other similar acts may have occurred.
D) recommend remedial actions to the audit committee.