What is the responsibility of auditors in the financial reporting process?

Auditors do not prepare financial statements; instead, they review and evaluate the statements prepared by management to ensure accuracy and compliance. The responsibility of preparing financial statements lies with the company's management, not the auditors, whose role is to provide an independent verification of those statements.

Managing internal accounting systems is typically the responsibility of the company's management and accounting staff. Auditors assess these systems during their audit process but do not manage or run them. Their role is to evaluate the effectiveness of internal controls as part of their audit procedures.

While auditors may consider tax compliance during their audits, enforcing tax compliance is primarily the responsibility of tax authorities and the company's tax professionals. Auditors focus on the accuracy and fairness of financial statements rather than directly enforcing tax regulations.