Your employer is a social media company. In performing the company's audit, you suspect that a state regulation that is fundamental to the company's business was not complied with. Under which instance would failure to comply with these regulations be considered noncompliance with laws and regulations $($NOCLAR$)?$

The failure to comply with the regulation did not fit within the scope of the NOCLAR interpretation.

The individual who failed to comply with the regulation was not working under the company's direction.

The failure to comply with the regulation was clearly inconsequential.

The individual who failed to comply with the regulation was the vice chair of the company's board.

Confirm