Although management has the responsibility for the preparation of the financial statements and the accompanying notes, it is acceptable for an auditor to draft the financial statements for the client or to offer suggestions for clarification.

Question

Quizplus · Accepted Answer

While the responsibility for preparing financial statements and notes lies with management, the auditor may offer suggestions for clarification or even prepare the statements for the client if they have the necessary expertise. However, the ultimate responsibility for the accuracy and completeness of the financial statements rests with management.

Although Management Has the Responsibility for the Preparation of the Financial