You are a newly hired associate auditor for Praxo & Hanks, CPAs, a professional services firm...

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Accounting

You are a newly hired associate auditor for Praxo & Hanks,CPAs, a professional services firm that provides financial audits,integrated audits, and tax work for a variety of private and publiccompany clients in the mid-Atlantic region of the U.S. Your firstweek with the firm was spent in a training program for audit staff,which was led by two of the firm’s audit managers. The first day ofthe training program focused on understanding the responsibilitiesof auditors and the nature and objectives of the services providedto audit clients. Answer the following based on what you shouldhave learned in the first day of training.
Required:
(a) Distinguish between the assertions made bymanagement in presenting financial statements and reporting onICFR, and the statements made within an auditor’s report.
(b) How do management’s assertions relate toaudit evidence?

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aManagement makes assertions about economic events and actions that affect the company claiming that all theses events are recorded chronologically and properly documented and presesnted in the financial statementsManagement also makes assertions about the See Answer

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