Question

Which of the following information would be included in the introductory paragraph of the

auditors' report on internal control over financial reporting if the report is presented separately
from the auditors' report on the entity's financial statements?
a. The fact that the auditors conducted an audit of the entity's financial statements.
b. The definition of a material weakness in internal control over financial reporting.
c. Statements identifying the responsibility of the auditors and management for internal
control over financial reporting.
d. A reference to the auditors' report and opinion on the entity's financial statements.

Answer 1

Option C. Statements identifying the responsibility of the auditors and management for internal control over financial reporting.

Step-by-step explanation:

The reason is that the introductory paragraph eliminates the confusion about the role and responsibility of external auditor and the management. This helps them to avoid any litigation based on the confusion and the recruitment of external auditors because they are not liable for internal control to the extent the management has the responsiblity. Furthermore, auditor is only liable to submit a list of internal control which he thinks are impaired or their is a need for a new internal control along with his recommendations. So the option C is correct.