Assignment task:
Responsibilities John, CPA, is planning the audit engagement of Nicole Industries. An understanding needs to be established regarding John's and Nicole's responsibilities. For each of the items in the table below, please identify the responsible party. Tasks to be performed Responsible Party A. Auditor is responsible B. Management is responsible C. Both are responsible D. Neither is responsible
1. Preparation of financial statements
2. Following generally accepted auditing standards
3. Detection of immaterial errors
4. Establishment of internal control
5. Provision of representation letter
6. Establishing and discussing the timing of the audit
7. Evaluating the effectiveness of internal control
8. Preparing audit work paper