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.Provide an opinion on overall compliance with laws and regulations.
　　b.Provide negative assurance of the entity's legal compliance.
　　c.State that the audit should be planned to obtain reasonable assurance about whether noncompliance could have a material effect on the entity's programs.
　　d.Describe the laws and regulations that the entity must comply with.
　　Answer：c
　　Choice "C" is correct. Basic elements of a report on compliance include a statement that the audit should be planned to obtain reasonable assurance about whether noncompliance could have a material effect on the programs audited.
　　Choice "d" is incorrect. It is not necessary to describe the laws and regulations with which the entity must comply.
　　Choice "a" is incorrect. The objective of the audit of the financial statements is not to provide an opinion on overall compliance with laws and regulations.
　　Choice "b" is incorrect. The report should specifically state that a compliance audit does not provide a legal determination of the entity's compliance.