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."

---

Definitions:

Mafia Hypothesis

A theory suggesting that certain animals, like some birds, may engage in retaliatory behavior against individuals who do not cooperate with them, akin to human "mafia" tactics.

Carotenoid Pigments

Organic pigments found in plants and certain algae and bacteria, responsible for the red, yellow, and orange colors in many fruits and vegetables, and important for photosynthesis and human health.

Signal Of Quality Hypothesis

A theory suggesting that certain traits or behaviors in animals serve as indicators of an individual's genetic quality or overall fitness to potential mates.

Hereditary

Traits or characteristics passed from parents to offspring through genes.