What auditing procedures should the auditor perform to identify instances of noncompliance with other laws and...

What auditing procedures should the auditor perform to identify instances of noncompliance with other laws and regulations (not those that may have a direct effect?)

Explain and Provide a quote from AU-C 250

Expert Solution

An organization is exposed to various laws regarding employee safety, environmental laws which are generally overlooked by organizations. It is imperative that auditors look after those works in their audit engagements.

Certain other laws and regulations may need particular attention by the auditor because they have a fundamental effect on the operations of the entity (as described in paragraph .06b. Noncompliance with laws and regulations that have a fundamental effect on the operations of the entity may cause the entity to cease operations or call into question the entity's continuance as a going concern. For example, noncompliance with the requirements of the entity's license or other entitlement to perform its operations could have such an impact (for example, for a bank, noncompliance with capital or investment requirements). (https://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-C-00250.pdf )

as required to quote from AC-C 250***

Identify the nature of entity
Identify the nature and type of entity
Identify the various laws and regulations applicable
Interview and discuss with employees looking after legal work about the possible breaches
Look upon the notices received from various authorities about non compliance and what company have done to address the same

ekkarill92 answered 1 year ago

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