Which of the following is explicitly included as a part of the description of management's responsibility in an unmodified audit report?
A) Management is responsible for making a judgment on which misstatements are material vs. immaterial.
B) Management is responsible for providing auditors with all relevant evidence.
C) Management is responsible for the maintenance of internal control.
D) Management is responsible for listing all illegal acts with a direct effect on financial statement amounts and disclosures.

Question

Quizplus · Accepted Answer

The maintenance of internal control is explicitly included in the description of management's responsibility in an unmodified audit report. This is because management is responsible for establishing and maintaining effective internal controls to ensure the reliability of financial reporting. Choices A, B, and D are not explicitly included in the description of management's responsibility in an unmodified audit report. Choice A refers to a judgment call made by the auditor, not management. Choice B is not explicitly stated, although management is responsible for providing auditors with access to all relevant information. Choice D is not explicitly stated, although management is responsible for identifying and disclosing any known or suspected fraud.

Which of the Following Is Explicitly Included as a Part