Question

1. What are the purposes of the two parts of the report management?
2. What is the auditor's responsibility related to the report of management

Answer 1

Answer :-

a - purposes of the two parts of the report management

The purpose of the first part of the report of management is;

For management of the organization to affirm its responsibilities for internal control over financial reporting

The purpose of the second part of the report by the management is to;

State the responsibility of the management for presenting financial statements fairly.

b - Auditor's responsibility related to the report of management

The responsibility of the auditor is to express an opinion on the effectiveness of internal control over financial reporting as well as an opinion on the fairness of the presentation of the financial statements,Auditor Express his openion on these consolidated financial statement based on our audit, We conducted our audit in accordence with Auditing standard Generally accepted in the United States of America,Those standerds require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statement are free from meterial misstatement,whether due to fruad or error.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statement,The procedures selected depends on the Auditor's judgement,Including the assesment of the risk of meterial misstatementof the consolidated financial statement, Whether due to fruad or error.In making those risk assesment, The auditor consider internel control relevent to the entity's prepereration and fair presentation of the consolidated financial statement in order to design audit procedures thet are appropriate in the circumstances,but not for the purpose of express no such opinion.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the consolidated financial statements.