A-A. | . U.,be x' g-B' | | Emphasis x, "Heading 1 Heading 3 Font Paragraph Styles 2 Compliance with Laws and Regulations. Audit standards distinguish auditors' responsibility for planning procedures for detecting noncompliance with laws and regulations having a direct effect on financial statements versus planning procedures for detecting noncompliance with laws and regulations that do not have a direct effect on financial statements Required: What are the requirements for auditors to plan procedures to detect . direct-effect compliance versus indirect-effect compliance? . For each of the following instances of noncompliance, explain why they are either direct-effect (D) or indirect-effect (I) noncompliance: e A manufacturer inflates expenses on its corporate tax return e A retailer pays men more than women for performing the same jolb .A coal mining company fails to place proper ventilation in its mines. . A military contractor inflates the overhead applied to a combat vehicle. .An insurance company fails to maintain required reserves for losses. . An exporter pays a bribe to a foreign government official so that government will buy its products. search