The correct answer is C. Both A and B.
The area of operations in auditing includes the condition of appointment and the needs of related law.
The condition of appointment refers to the terms of the audit, such as the scope of the audit, the fees, and the reporting requirements. The needs of related law refer to the laws and regulations that apply to the entity being audited.
Both the condition of appointment and the needs of related law must be considered when planning and performing an audit. The auditor must ensure that the audit is conducted in accordance with the terms of the appointment and that all relevant laws and regulations are considered.
Here is a brief explanation of each option:
- Option A: Condition of appointment. The condition of appointment refers to the terms of the audit, such as the scope of the audit, the fees, and the reporting requirements. The auditor must ensure that the audit is conducted in accordance with the terms of the appointment.
- Option B: Needs of related law. The needs of related law refer to the laws and regulations that apply to the entity being audited. The auditor must ensure that all relevant laws and regulations are considered when planning and performing the audit.
- Option C: Both A and B. Both the condition of appointment and the needs of related law must be considered when planning and performing an audit. The auditor must ensure that the audit is conducted in accordance with the terms of the appointment and that all relevant laws and regulations are considered.
- Option D: Either A or B. This option is incorrect because both the condition of appointment and the needs of related law must be considered when planning and performing an audit.