Final answer:
During the report preparation period, the responsibility of an auditor is to review the company's financial records, transactions, and internal controls to ensure the accuracy and reliability of the financial statements.
Step-by-step explanation:
The role of an auditor is to ensure the financial statements are accurate and reliable, which is essential for stakeholders' decision-making. They conduct a detailed examination of the company's financial records, transactions, and internal controls to identify any potential discrepancies or fraudulent activities. Auditors are responsible for verifying the compliance of financial statements with accounting standards and regulations. They provide an opinion on the fairness of the financial statements, which is a critical factor in building trust between the company and its stakeholders. The auditor's report is an essential document that can help investors, creditors, and other stakeholders make informed decisions. A thorough and accurate audit report can also help companies improve their financial management practices and internal controls.