Which of the following statements best describes management's and the external auditor's respective levels of responsibility for a public company’s financial statements?

a. Management and the external auditor share equal responsibility for the fairness of the entity’s financial statements in accordance with GAAP.

b. Neither management nor the external auditor has significant responsibility for the fairness of the entity’s financial statements in accordance with GAAP.

a ene has the primary responsibility to ensure that the com-

\“ pany’s financial statements are prepared in accordance with GAAP, and the auditor provides reasonable assurance that the statements are free of material misstatement. LO587