If there is a conflict between secondary guidance and binding regulation, which governs?

If there is a conflict between secondary guidance and binding regulation, which governs?

• A. Secondary guidance governs
• B. Binding regulation governs
• C. The auditee decides
• D. The auditor decides

Answer: (B)

Binding regulations have legal authority and must be followed. Secondary guidance is advisory, offering interpretation or best practices to help apply the regulation. When they conflict, the binding regulation governs. The auditee is bound by the regulation and must comply, and the auditor evaluates compliance against the binding rule rather than the guidance. The regulator’s rule takes precedence, not the guidance or the individuals involved. If ambiguity arises, refer to the binding requirement or seek official clarification, but never let advisory guidance override a binding rule.

Binding regulations have legal authority and must be followed. Secondary guidance is advisory, offering interpretation or best practices to help apply the regulation. When they conflict, the binding regulation governs. The auditee is bound by the regulation and must comply, and the auditor evaluates compliance against the binding rule rather than the guidance. The regulator’s rule takes precedence, not the guidance or the individuals involved. If ambiguity arises, refer to the binding requirement or seek official clarification, but never let advisory guidance override a binding rule.