I disagree that auditors are solely responsible for ensuring material misstatements do not prevail. There is...
I disagree that auditors are solely responsible for ensuring material misstatements do not prevail. There is the management letter that is provided as a part of the annual report and 10k along with the auditor's opinion that states that the FS are the sole responsibility of the management.
What can be added to this statement? Agree or disagree with this statement?
Homework Answers
Management's responsibility relating to the financial statements
Management is responsible for adopting sound accounting policies and for establishing and maintaining internal controls that will, among other things, initiate, record, process and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statement. The preparation of the financial statements is the responsibility of the Management.
Auditor's responsibility relating to the financial statements
The auditor's responsibility relating to the financial statements are to provide opinion that the financial statements are free from material misstatements where caused by error or fraud. The auditor is required to provide a reasonable assurance and not absolute assurance that the financial statements represents the true and fair view of the financial position of the company/ Organization.
Therefore, financial statements are primary responsibility of the management and auditor's responsibility relating to financial statements are restricted to providing an opinion on the financial statements that the same is free from material mistatements. The auditor is required to obtain a reasonable assurance and not absolute assurance relating to the fact that the financial statements are free from material misstatement.
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Please help assist:
View the attached pictures with the lecture on additional
disclosures from auditors.
Analyze (in fewer than 150 words) these mandatory additional
disclosures.
You can take the perspective of the investor, auditor, or the
company.
Logically argue your case.
Please Search for, and cite, information sources, and those
found in the article. Whenever you can, give real-world
examples
to support your commentary.
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Please don't copy the answers from the book solutions, I need an
answer to a,b,c,d,e,f,g and h.
thanks
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Please help assist:
View the attached pictures with the lecture on additional
disclosures from auditors.
Analyze (in fewer than 150 words) these mandatory additional
disclosures.
You can take the perspective of the investor, auditor, or the
company.
Logically argue your case.
Please Search for, and cite, information sources, and those
found in the article. Whenever you can, give real-world
examples
to support your commentary.
The federal regulator that polices accounting firms is proposing a major overhaul of how company...
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