Which of the following statements best describes auditors' responsibility for detecting a client's noncompliance with a law or regulation?
a. auditors must design tests to detect all noncompliance that directly affects the financial statements
b. auditors must design tests to obtain reasonable assurance that all noncompliance with direct material statement effects is detected
c. the responsibility for detecting noncompliance exactly parallels the responsibilities for errors and fraud
d. auditors must design tests to detect all material noncompliance that indirectly affects the financial statements
Answer: b. auditors must design tests to obtain reasonable assurance that all noncompliance with direct material statement effects is detected
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