CPA Study Group
I chose that the financial statements are the responsibility of management. The correct answer is supposedly none of the above, but the explanation says that the financial statements are the responsibility of management?
it asks about the 1st line of the audit report and its none of the above as it starts with we have audited the fS of abc
The question is asking about which party has responsibility for the financial statements AND expressing an opinion on the FS. Since management is responsible for the financial statements and the auditor is responsible for the opinion, none of the answer choices given are appropriate. The correct answer would state that mgmt. has responsibility for the preparation and fair presentation of the FS, while the auditor is responsible for the opinion.