What change is necessary in the management responsibility paragraph for a special purpose framework?

In the context of auditing financial statements prepared under a special purpose framework, it is essential to recognize that the management responsibility paragraph needs to reflect the unique aspects of that framework. By referencing management's responsibility for the acceptance of the special purpose framework, the auditor clarifies that management is responsible not just for preparing financial statements in accordance with that framework, but also for ensuring that the framework is appropriate for the intended users.

This inclusion is critical because special purpose frameworks often cater to specific informational needs and may differ significantly from GAAP or other recognized accounting frameworks. Acknowledging this responsibility underscores the notion that management must adequately assess whether the chosen framework is suitable for the circumstances, which is essential for transparency and for the understanding of users of the financial statements.

The other options, while important considerations in governance and ethics, do not specifically address the management's acknowledgment of the appropriateness of the special purpose framework itself. Thus, emphasizing their responsibility for accepting and applying that framework is the necessary change in this context.