Carol Warren, CPA, is performing an audit of the City of Ryan in accordance with generally accepted

Question:

Carol Warren, CPA, is performing an audit of the City of Ryan in accordance with generally accepted auditing standards.

Required:

a. Must Carol be concerned with the city's compliance with laws and regulations? Explain.

b. How should Carol decide on the nature and extent of the tests of compliance that should be performed in the audit?

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JAPHETH KOGEI

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