Is the audit team required to detect noncompliance with all regulations that the company is subject to?
The audit team is not responsible for preventing noncompliance with all regulation. However, it is the audit team’s responsibility to obtain reasonable assurance that the financial statements as a whole are free material misstatement whether due to fraud or error.
So, at times, the auditor may be responsible for detecting noncompliance if the noncompliance could cause the financial statements to be materially misstated.
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