Many people confuse the responsibilities of the independent

auditors and the client's management with respect to audited

financial statements.

a. Describe management's responsibility regarding audited financial

statements.

b. Describe the independent auditors' responsibility regarding

audited financial statement

c. Evaluate the following statement: "if the auditors disagree

with management regarding an accounting principle used in the

financial statement the auditors should express their views in the

notes to the financial statements."