1.Many people confuse the responsibilities of the independent auditors and the client's management with respect to audited financial statements.

a. Describe management's responsibility regarding audited financial statements.

b. Describe the independent auditors' responsibility regarding audited financial statements.

c. Evaluate the following statement: "If the auditors disagree with management regarding an accounting principle used in the financial statements, the auditors should express their views in the notes to the financial statements."

2.The standard unmodified auditors' report for audits of nonpublic companies consists of three paragraphs. Identify the three paragraphs and describe the purpose of each.