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What is the purpose of ISA 250, Consideration of Laws and Regulations in an Audit of Financial Statements?
What is the purpose of ISA 250, Consideration of Laws and Regulations in an Audit of Financial Statements?
- To perform specified audit procedures to help identify non-compliance with other laws and regulations
- To respond appropriately to non-compliance or suspected non-compliance identified during the audit (correct)
- To obtain sufficient appropriate audit evidence that have a direct effect on the determination of material amounts and disclosures in the financial statements
- To overlook non-compliance with laws and regulations during the audit
How does ISA 250 define 'non-compliance'?
How does ISA 250 define 'non-compliance'?
- Acts of omission or commission by the entity, whether intentional or unintentional, contrary to prevailing laws or regulations (correct)
- Acts of omission or commission unrelated to business activities of the entity
- Personal misconduct by those charged with governance, management, or employees of the entity
- Acts of commission that are intentional and related to business activities of the entity
What is the auditor's responsibility concerning direct and indirect laws and regulations?
What is the auditor's responsibility concerning direct and indirect laws and regulations?
- To maintain a degree of professional skepticism and remain alert on instances of non-compliance or suspected non-compliance (correct)
- To assume that all laws and regulations are being adhered to by the entity
- To ignore instances of non-compliance with laws and regulations
- To report all instances of non-compliance without any investigation
According to ISA 250, what is not considered as 'non-compliance'?
According to ISA 250, what is not considered as 'non-compliance'?
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What type of audit procedures does ISA 250 require to help identify non-compliance with other laws and regulations?
What type of audit procedures does ISA 250 require to help identify non-compliance with other laws and regulations?
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