Question

The responsibility for assessing and developing an opinion on the financial statements, and responsibility for preparing the financial statements is including as a paragraph in the:

Select one:

a. Auditor responsibilities and basis of opinion sections of the audit report respectively.

b. Auditor responsibilities and management's responsibilities sections of the audit report respectively.

c. Auditor opinion and management's responsibilities sections of the audit report respectively.

d. Management's responsibilities and basis of opinion sections of the audit report respectively.

Answer 1

The responsibility for assessing and developing an opinion is the ultimate responsibility of the auditor, the auditor will Express an opinion on financial statements in compliance with the provisions of the act and also auditing and accounting standards which are to be included in audit report. So the responsibility for assessing and developing an opinion is included in the "Auditors responsibility" section of the audit report.

The preparation of financial statements is ultimate responsibility of the management and those charged with governance and hence it is included in the "Management responsibility" paragraph in the audit report.

Answer: b