Direct and material noncompliance is noncompliance having a direct and material effect on the determination of financial statement amounts or could have a significant effect on other financial data needed to achieve audit objectives.
It is not possible to perform audits without sound financial statements.
mnli hypothesis: It is not possible to perform audits without sound financial statements. premise: Direct and material noncompliance is noncompliance having a direct and material effect on the determination of financial statement amounts or could have a significant effect on other financial data needed to achieve audit objectives.