Final answer:
Management's explicit responsibility in an unmodified auditor's report is to assess the entity's ability to continue as a going concern. This includes evaluating the operational continuity for the foreseeable future, not developing audit procedures or providing legal advice. Option b) is correct.
Step-by-step explanation:
The student is asking about what is explicitly included in the description of management's responsibility in an unmodified auditor's report. Among the options given, the responsibility of management that is explicitly included in an unmodified auditor's report is b) Assessing the entity's ability to continue as a going concern. This involves management evaluating whether there are significant doubts about the entity’s ability to continue to operate for the foreseeable future.
Other responsibilities typically described in the report would relate to the preparation and fair presentation of the financial statements and the implementation and maintenance of internal controls. Responsibilities such as developing audit procedures, determining materiality thresholds, and providing legal advice to the auditor fall under the auditor's responsibilities, not those of management.