For Laws with an Indirect Impact on the Financial Statements

Multiple Choice

For laws with an indirect impact on the financial statements the auditor should perform audit procedures to identify instances on noncompliance with laws and regulations that may have a material effect on the financial statements.The auditor does this by

A) inquiring with management about the company's compliance with laws and regulations
B) reviewing regulations of relevant licensing or regulatory bodies
C) corresponding with relevant licensing or regulatory bodies
D) inspecting correspondence with relevant licensing or regulatory bodies
E) both A and B
F) both A and D
G) both C and E