In a conversation with the Production Manager of your company over lunch, you expressed how tight you are at the office, trying to produce 2016 financial statements free from material misstatements either due to fraud or errors. The Production Manager however said, why worry, after all the auditors would come and look for such fraud and errors in the financial statements. Required: As the Financial Controller of the company, respond to the Production Managers expectation by explaining the expectation gap in audit giving further examples of the public perception of audit. 34. In the context of the auditor's report, ISA 700 (as amended) Forming an opinion and reporting on financial statements explains the form and content of external audit reports: Critically discuss the Auditors responsibility paragraph in an unmodified report of a rural bank.