as are material and which might impair the statements have been corrected or properly disclosed.
Auditors are not responsible to examine an entity's compliance with the law in every aspect of the client's operation (Allan & Fforde, 1986, p. 78). Instead, the auditor's responsibility is to design his evaluation so that he can reasonably determine the compliance of his client with laws which directly impact the truth and fairness of the financial statements. At least, this has been the traditional stance of the auditor to date.
The obvious problem faced by internal auditors is that of a serious legal, ethical or economic dilemma. Certainly the auditor is beholden to the client, but, at the same time, auditors are being called on to inform outside authorities of wrongdoing.
The Institute of Internal Auditors offers some guide
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