This lesson covers the concept of a compliance engagement and the various factors an auditor or practitioner should consider when reporting on compliance with aspects of contractual agreements or regulatory requirements. Additionally, the lesson dives into an accountant's responsibilities in performing tests of compliance with laws and regulations, as well as the auditor's responsibility related to supplementary information in documents accompanying financial statements. Finally, the lesson addresses the factors an auditor should consider when reporting on supplemental information included in or accompanying the financial statements, providing valuable knowledge for tackling this area of the exam.