In obtaining reasonable assurance that the financial statements are free of material misstatement,the auditor does not need to take into account the applicable legal and regulatory framework relevant to the client.

Question

Quizplus · Accepted Answer

The auditor must take into account the applicable legal and regulatory framework relevant to the client as this framework may have a significant impact on the financial statements. It is the auditor's responsibility to have knowledge of and comply with any relevant legal and regulatory requirements. Therefore, the statement in the question is false.

In Obtaining Reasonable Assurance That the Financial Statements Are Free