Indicate whether you agree or disagree with the following statements and explain your reasoning. (each 2.5 marks, total: 10 marks)

a) An auditor is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. (2.5 marks)

b) An assurance engagement involves evaluation or measurement of subject matter against criteria. (2.5 marks)

c) By signing the engagement letter, management is not necessarily considered to be responsible for the financial statements. (2.5 marks)

d) To successfully sue an auditor, a plaintiff must only prove that a duty of care was owed by the auditor. (2.5 marks)