If a legal relationship exists between the client and the holder of bonds, the auditor must determine if the client has met the requirements of the bondholder agreement.

Question

Quizplus · Accepted Answer

This statement is true. As the auditor is responsible for reviewing the financial statements of the client, they must ensure that the client has met their obligations as agreed upon in legal agreements such as bondholder agreements.

If a Legal Relationship Exists Between the Client and the Holder