If specific information comes to the auditors' attention that provides evidence concerning the existence of possible noncompliance that could affect financial data significant to the audit objectives or that could have a material indirect effect on the financial statements, auditors should apply audit procedures specifically directed to ascertaining whether noncompliance has occurred or is likely to have occurred.
During the course of this year's corporate audit, auditors should be aware of noncompliance and follow specific steps if noncompliance is suspected.