Distinguish between management's and the auditor's responsibility for the financial statements being audited.

A. It is management's responsibility to maintain adequate internal control and make fair representations in the financial statements. The auditor's responsibility is to report the findings of the audit in the auditor's report.

B. It is management's responsibility to hire the CPA firm. The auditor's responsibility is to adopt sound accounting policies and to prepare the financial statements accordingly.

C. It is management's responsibility to adopt sound accounting policies. The auditor's responsibility is to conduct an audit of the financial statements in accordance with accounting standards.

D. It is management's responsibility to perform an internal audit of their statements prior to the external audit. The auditor's responsibility is to maintain adequate internal control and make fair representations in the financial statements.

E. Both A and C

F. None of the above