In an audit engagement, management is primarily responsible for presenting the financial statements in conformity with generally accepted accounting principles. The CPA provides assurance that the financial statements are fairly presented in accordance with generally accepted accounting principles. The CPA obtains knowledge of the accounting principles and practices of the industry and an extensive knowledge of the client’s business including the relevant industry and the economy. The accountant is required to obtain an understanding of the client’s internal control structure and to assess control risk. Inquiries, analytical procedures and other audit procedures are required to support financial information. All generally accepted accounting principles disclosures are required or a qualified or adverse opinion must be issued in an audit report.
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