Many People Confuse the Responsibilities of the Independent Auditors and the Client's

question 18

Essay

Many people confuse the responsibilities of the independent auditors and the client's management with respect to audited financial statements.
a.Describe management's responsibility regarding audited financial statements.
b.Describe the independent auditors' responsibility regarding audited financial statements.
c.Evaluate the following statement: "If the auditors disagree with management regarding an accounting principle used in the financial statements,the auditors should express their views in the notes to the financial statements."

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Definitions:

Left Lung

The smaller of the two lungs in the human body, consisting of two lobes, to accommodate the heart's position on the left side.

Lobes

Divisions or sections of an organ, separated by fissures or connective tissue, often found in the brain, lungs, and liver.

Pharynx

A muscular tube that serves as a pathway for both air (to the larynx) and food (to the esophagus), playing a role in the respiratory and digestive systems.

Oropharynx

The part of the throat at the back of the mouth behind the oral cavity, including the tonsils.