Shripal Company got a show cause notice from State Pollution Control Board for the contravention of

Shripal Company got a show cause notice from State Pollution Control Board for the contravention
of the provisions of Hazardous and waste Management Rule. As per SA 250, the auditor shall
perform the audit procedures to help identify instances of non-compliance with other laws and
regulations that may have a material effect on the financial statements. As the audit team of the
company became aware of information concerning an instance of non-compliance with law, what
would NOT be the audit procedure to be performed?

(a) Understand the nature of the act and circumstances in which it has occurred and obtain
further information to evaluate the possible effect on the financial statement.

(b) Discuss the matter with management and if they do not provide sufficient information; and the effect of non-compliance seems to be material, legal advice may be obtained.

(c) Monitoring legal requirement and compliance with code of conduct and ensuring that
operating procedures are designed to assist in the prevention of non-compliance with law and
regulation and report accordingly.

(d) Evaluate the implication of non-compliance in relation to other aspects of audit including risk
assessment and reliability of written representation and take appropriate action