Management’ responsibilities

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Both of them has different format in LG the impendent audit repot has four part: Management’s
responsibilities for the financial statements, Auditor’s responsibilities, Opinion and Other Matter. While
at Nestle the audit report has three part ; opinion, basis opinion and Other Matter. So they are different
just on two part.
At LG the on the financial statements the report issues based on audit. The auditors proceed
their audit in with conformity auditing standards generally accepted in the Republic of Korea.
Those standards require that auditor plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation.
at Nestle the auditors the auditors issue a report on the financial statements based on their
audit. they conducted thier audit in accordance with the Standards on Auditing specified .
Those Standards require that they comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company’s preparation of the financial
statements that give a true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on whether
the Company has in place an adequate internal financial control system over financial reporting
and the operating effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness of the accounting
estimates made by the Company’s Directors, as well as evaluating the overall presentation of
the financial statements.

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