In the independent auditor's report, the following are stated: Management Responsibilities for Financial Statements: and on internal controls deemed necessary by management to enable the preparation of Financial Statements that are free from material misstatement, whether caused by fraud or error. Auditors Responsibilities: In performing this risk assessment, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Thus the importance of internal control (Internal Control) against material misstatements in the financial statements. This responsibility rests with management and auditors. You are asked to explain: a. How the auditor performs this responsibility and what is its purpose. (10%) b. What is meant by the sentence: ..but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control . (10%)