In Performing a Financial Statement Audit in Accordance with Government

In performing a financial statement audit in accordance with Government Auditing Standards, an auditor is required to report on the entity's compliance with laws and regulations. This report should:

A) State that tests of compliance with laws and regulations that have a direct and material effect on the financial statements is part of obtaining reasonable assurance that the financial statements are free of material misstatement.
B) Describe the laws and regulations that the entity must comply with.
C) Provide an opinion on overall compliance with laws and regulations.
D) Indicate that the auditor does not possess legal skills and cannot make legal judgments.