Choice "B" is correct. The auditor's understanding with the client often includes discussion of any specialists who will be involved in the engagement.
Choice "a" is incorrect. An audit should be planned and performed to obtain reasonable assurance about whether the financial statements are free of material misstatement. Absolute assurance is not provided.
Choice "c" is incorrect. The client is responsible for ensuring compliance with applicable laws, not the auditor.
Choice "d" is incorrect. The auditor may suggest correcting or adjusting entries, but it is the client who is responsible for actually making any adjustments to the financial statements.