A CPA is in the audit planning phase of a company. An understanding needs to be established regarding the responsibilities of the CPA and the companys management. For each of the task items listed below indicate the responsible party from the list of choices given. Each choice may be used once, more than once or not at all.

Responsible Party:

a. Auditor is responsible

b. Management is responsible

c. Both are responsible

d. Neither are responsible

Task to be performed:	Responsible Party:
1. Obtain an understanding of internal controls
2. Preparation of the financial statements
3. Assess inherent risk
4. Following GAAP or IFRS
5. Establish internal controls
6. Detect Material Error
7. Comply with laws and regulations
8. Assess the risk of the allowance for doubtful accounts estimate
9. Determine the known and likely errors or misstatements