If specific information comes to the auditors ' attention that provides evidence concerning the existence of possible noncompliance that could affect financial data significant to the audit objectives or that could have a material indirect effect on the financial statements , auditors should apply audit procedures specifically directed to ascertaining whether noncompliance has occurred or is likely to have occurred .
Auditors who find meaningful discrepancies or red flags must follow specific procedures to find out if noncompliance is an issue is may have been an issue .