An audit engagement letter specifies that management of the client company is responsible for all of the following except:
A) preparing the financial statements.
B) maintaining effective ICFR.
C) providing the company's financial records for the auditor.
D) performing the audit in accordance with PCAOB standards.

Question

Quizplus · Accepted Answer

The responsibility of performing the audit in accordance with PCAOB (Public Company Accounting Oversight Board) standards lies with the auditor, not management of the client company. Management is responsible for preparing the financial statements, maintaining effective ICFR (Internal Control over Financial Reporting), and providing the company's financial records for the auditor.

An Audit Engagement Letter Specifies That Management of the Client