Accountants can report on compliance with laws and regulations in conjunction with an audit engagement or as a separate engagement. What is the difference in the objective of reporting on compliance with laws and regulations in conjunction with an audit engagement and reporting as a separate engagement?

Answer rating: 100% (QA)

Reporting on compliance with laws and regulations in conjunction with an audit engagement and reporting as a separate engagement differ primarily in their objectives 1 Reporting in Conjunction with an Audit Engagement Objective The primary objective here is to provide reasonable assurance that financial statements are free from material misstatement whether caused by error or fraud and to express an opinion on the fairness of presentation in accordance with the applicable financial reporting framework Compliance Reporting While performing the audit if the auditor becomes aware of material noncompliance with laws and regulations that may have a direct effect on the financial statements they are required to report such instances However the objective is not solely focused on compliance its incidental to the primary objective of the audit 2 Reporting as a Separate Engagement Objective In this case the objective is specifically to evaluate and report ... View the full answer