Question

Compare and contrast the difference between management's and auditor's responsibilities. Provide examples.

Answer 1

1. Management is responsible for preparation of books of accounts while an auditor is required to independently examine those books of accounts.

2. Management is not an independent committee while auditors are independent.

3. Contents of financial statements are assertions of management while Examination of financial statements and issuance of reports are auditors responsibility.

These are the major differences between management's and auditor's responsibilities.