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Yes audited financial statements are jointly signed by auditors as well as management of company as an acknowledgment.
The primary objective of independent auditors are rendering opinion report on the financial statement that is the responsibility of client management. The main reason auditors need to be independent are to provide credentional for the client prepared financial statements. Therefore, the users (Bankers, Investers and third party) of the financial statement can have unbiased information about the client financial Statements.
Management is initially responsible for preparing financial statements and auditors are responsible for reasonable assurance
Vernon Turley has written: 'The Banker's guide to auditors' reports and financial statements' -- subject(s): Auditors' reports, Financial statements
external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control)
R. J. Mayes has written: 'A guide to SAS 600: 'Auditors' reports on financial statements'' 'Reporting to management'
TO ENSURE THE FINANCIAL STATEMENTS GIVE A TRUE AND FAIR VIEW
Unqualified audited financial statement is set of financial statements which are audited by external financial auditors and found "True and fair view" of financial statements and clear from any fraud etc.
An auditor specialises in examining and verifying a set of financial statements by reference to evidence (physical, oral, documentary, etc). When he/she are satisfied that the financial statements are true and fair, the auditor will issue a clean auditors' report; on the other hand, if the financial statements or the company are detected to show problems (e.g. show signs of fraudulent activity), the auditor's report will also make this clear.
Auditors refer to situations where the outcome of a matter cannot be reasonably estimated at the time of issuing the financial statements as an uncertainty. Uncertainties are disclosed in the financial statements to notify users that there is a potential for a significant impact on the financial statement values. Auditors evaluate the nature and extent of uncertainties to determine if appropriate disclosures have been made.
Expectations gap === The expectation gap is the gap between the auditors' actual standard of performance and the various public expectations of auditors' performance (as opposed to their required standard of performance). Many members of the public expect that:auditors should accept prime responsibility for the financial statements,auditors 'certify’ financial statements,a 'clean’ opinion guarantees the accuracy of financial statements,auditors perform a 100% check,auditors should give early warning about the possibility of business failure, andauditors are supposed to detect fraud (See Wisconsin Law Journal article entitled, "Why Didn't Our Auditors Find the Fraud?").Such public expectations of auditors, which go beyond the actual standard of performance by auditors, have led to the term 'expectation gap’. Above retrieved from Abrema http://www.abrema.net/abrema/expect_gap_g.html Viper1
Auditors are supposed to plan and perform the audit to obtain reasonable assurance that the financial statements presented by management are free of material misstatement that are caused by error or fraud. They only provide reasonable assurance not a guarantee that there is no misstatement or fraud. If they auditor is auditing a public company they also have the responsibility to evaluate internal controls. In other words the auditor plans and audit, gathers evidence, and then makes a report stating whether or not they believe the financial statements are presented fairly.