| A9. | Certain other laws and regulations may need particular attention by the auditor because they have a fundamental effect on the operations of the entity (as described in paragraph 6(b)). Non-compliance with laws and regulations that have a fundamental effect on the operations of the entity may cause the entity to cease operations, or call into question the entity's continuance as a going concern. For example, non-compliance with the requirements of the entity's license or other entitlement to perform its operations could have such an impact (for example, for a bank, non-compliance with capital or investment requirements)9e. There are also many laws and regulations relating principally to the operating aspects of the entity that typically do not affect the financial statements and are not captured by the entity's information systems relevant to financial reporting. |
| A10. | As the financial reporting consequences of other laws and regulations can vary depending on the entity's operations, the audit procedures required by paragraph 14 are directed to bringing to the auditor's attention instances of non-compliance with laws and regulations that may have a material effect on the financial statements. |
| A10-1. | When determining the type of procedures necessary in a particular instance the auditor takes account of the particular entity concerned and the complexity of the regulations with which it is required to comply. In general, a small company which does not operate in a regulated area will require few specific procedures compared with a large multinational corporation carrying on complex, regulated business. |
| 9e Such requirements exist in the UK under the Financial Services and Markets Act 2000 and in Ireland under the Investment Intermediaries Act 1995, the Central Bank Acts 1942 to 1989 and the Credit Union Act, 1997. |
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