Harvest Company, a nonissuer, offers an array of organic products to higher$-$end grocery stores. Young & Waterhouse, CPAs, are due

to start the audit of Harvest's financialstatements. What are Young & Waterhouse's responsibilities regarding Harvest's

noncompliance with laws and regulations?

Investigating all reported violations of applicable laws and regulations to determine whether noncompliance has occurred.

Identifying systems changes needed to ensure compliance with applicable laws and regulations that directly and materially

affect the financial statements.

Verifying that Harvest's operations are conducted in accordance with all applicable laws and regulations.

Obtaining an understanding of the laws and regulations applicable to Harvest and how compliance is being addressed.