Sisterly advice re-discipline

My husband has asked me to come to my "people" for advice. Our 2 year old is driving us up the wall. She doesn't take us seriously when we try to discipline her. Currently we are using the time-out method. When we tell her no, or tell her to stop doing it she will just laugh at us and keep doing it even more. When given a time out she will laugh at us and refuse to follow directions.

We are at our wits end and are open to hearing any suggestions.

liep