Auditing & Assurance › Audit Report & Opinions
What are management's and the auditor's responsibilities as stated in the report?
AdvancedAnswer
The report states management's responsibility for preparing the statements in accordance with the framework, for internal control enabling that, and for assessing going concern; and those charged with governance's oversight responsibility. The auditor's responsibilities section describes obtaining reasonable assurance and expressing an opinion, exercising skepticism, and the inherent limitations—clarifying the respective roles to narrow the expectation gap.
Real-world example The responsibilities sections make clear management prepares the accounts while the auditor independently opines, addressing the expectation gap.