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

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The auditor does need to consider the applicable legal and regulatory framework relevant to the client as part of their audit planning and execution. This includes identifying and assessing the risk of non-compliance with laws and regulations that could result in a material misstatement of the financial statements. The auditor also needs to evaluate management's compliance with applicable laws and regulations that could have a direct effect on the financial statements.

In Obtaining Reasonable Assurance That the Financial Statements Are Free