If specific information comes to an auditor's attention that implies noncompliance with laws that could result in a material, but indirect effect on the financial statements, the auditor should next

a. Apply audit procedures specifically directed to ascertaining whether noncompliance has occurred.

b. Seek the advice of an informed expert qualified to practice law as to possible contingent liabilities.

c. Report the matter to an appropriate level of management at least one level above those involved.

d. Discuss the evidence with the client's audit committee, or others with equivalent authority and responsibility.