You are a newly qualified accountant who works for the audit firm David David & Co. You have been approached by a potential new client, Slingshot Electronics Pty Ltd (“Slingshot”), who is looking for an audit firm to carry out an audit on its annual financial report prepared in accordance with the Corporations Act 2001. The managing director of Slingshot, Goliath, is not sure exactly what an audit involves and what are the responsibilities of the auditor.

REQUIRED:

Identify and explain to the managing director, Goliath, the responsibilities of the auditor and the responsibilities of management.

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