Which of the Following Statements Best Describes Auditors' Responsibility for Detecting

Multiple Choice

Which of the following statements best describes auditors' responsibility for detecting a client's noncompliance with a law or regulation?

A) The responsibility for detecting noncompliance exactly parallels the responsibility for errors and fraud.
B) Auditors must design tests to detect all material noncompliance that indirectly affect the financial statements.
C) Auditors must design tests to obtain reasonable assurance that all noncompliance with direct material statement effects are detected.
D) Auditors must design tests to detect all noncompliance that directly affect the financial statements.