The management's responsibilities section of the standard unmodified opinion audit report for a nonpublic company states that the financial statements are
A) the responsibility of the auditor.
B) the responsibility of management.
C) the joint responsibility of management and the auditor.
D) none of the above.

Question

Quizplus · Accepted Answer

The management's responsibilities section of the standard unmodified opinion audit report for a nonpublic company explicitly states that the financial statements are the responsibility of management. This means that management is responsible for preparing and presenting the financial statements fairly, in accordance with accounting principles generally accepted in the United States of America. The auditor's responsibility is to express an opinion on the financial statements based on their audit work, but ultimately, the responsibility for the financial statements lies with management.

The Management's Responsibilities Section of the Standard Unmodified Opinion Audit