ment Question 4 of 30 < > View Policies -/0.67 Current Attempt in Progress The Big Blue House is a company engaged in the manufacture of paint removers. While studying the client's industry, Luna, the assigned external auditor for Big Blue House, comes across a legitimate article which discussed the decision of the Environmental Protection Agency to ban methylene chloride. Luna also learned during an observation that this chemical is being used by the Big Blue House for its paint removers. What is the responsibility of Luna regarding this non-compliance? O Luna is responsible for detecting material misstatements related to this non-compliance. This non-compliance might have a direct and material effect on the financial statements O Luna has no responsibility regarding this non-compliance, External auditors are not expected to be experts in non- accounting laws and regulations. O Luna has the responsibility to report this to the Environmental Protection Agency immediately. Luna does not need to get the consent of Big Blue House. O Luna can ignore this non-compliance. The focus of the external audit is on the financial statements only. Save for Later Attempts: 0 of 2 used Submit Answer