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4-24 1 2 4 It is well accepted that, throughout the conduct of the ordinary audit, it is essen- tial to obtain large amounts of
4-24 1 2 4 It is well accepted that, throughout the conduct of the ordinary audit, it is essen- tial to obtain large amounts of information from management and to rely heavily on management's judgments. After all, the finan- cial statements are management's representa- tions, and the primary responsibility for their fair presentation rests with management, not the auditor. For example, it is extremely diffi- cult, if not impossible, for the auditor to eval- uate the obsolescence of inventory as accu- rately as management can in a highly com- plex business. Similarly, the collectability of accounts receivable and the continued useful- ness of machinery and equipment are heavily dependent on management's willingness to provide truthful responses to questions. Required Reconcile the auditor's responsibility for dis- covering material misrepresentations by management with these comments
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