Which of the following best describes the general contents of the introductory paragraph of the auditors' report?
A) A description of an audit examination, including the fact that the audit was conducted under standards established by the PCAOB.
B) The auditors' conclusion with respect to the fairness of the entity's financial statements.
C) Statements identifying the responsibility of auditors and management in the financial reporting process.
D) The auditors' conclusion with respect to the effectiveness of the entity's internal control over financial reporting.

Question

Quizplus · Accepted Answer

The introductory paragraph of the auditors' report typically includes statements identifying the respective responsibilities of auditors and management in the financial reporting process. This includes a statement that the financial statements are the responsibility of management, while the auditors' responsibility is to express an opinion on the fair presentation of the financial statements. It may also mention the applicable financial reporting framework and the fact that the audit was conducted according to auditing standards established by the PCAOB. The auditors' conclusion on the fairness of the financial statements and the effectiveness of internal control typically come later in the report.

Which of the Following Best Describes the General Contents of the Introductory