Auditing and the Environment. Auditors are interested in the impact that past and present environmental activities have on the organization's financial statements and are also interested in compliance with laws, statutes and regulations and the effect that non-compliance may have on the financial statements.

Required

A. List ten questions that the auditor would ask an entity’s management to obtain an understanding of environmental impact on the company.

B. For each question discuss the meaning of receiving a negative response from the person being interviewed.