Final answer:
Auditor responsibilities under Section 404 and AS5 involve assessing the effectiveness of internal control over financial reporting and obtaining reasonable assurance about the reliability of an organization's financial reporting.
Step-by-step explanation:
Auditor Responsibilities under Section 404 and AS5
Section 404 of the Sarbanes-Oxley Act (SOX) and Auditing Standard No. 5 (AS5) outline the responsibilities of auditors in relation to internal control over financial reporting (ICFR).
Under Section 404, public companies are required to assess the effectiveness of their ICFR, and auditors are responsible for obtaining reasonable assurance about the reliability of the company's financial reporting.
AS5 provides guidance on how auditors should plan and perform their audits of ICFR, including assessing risk and materiality, and evaluating management's assessment of the company's ICFR. This includes testing the design and operating effectiveness of controls.