I am using Becker to study for auditing and I am a little confused about the following:
"Management acknowledges its responsibility for the design of controls to detect and prevent fraud in its management representation letter."
"Management acknowledges its responsibility for the fair presentation of the financial statements and states that they are unaware of any employee fraud, but does not acknowledge responsibility for the detection of employee fraud."
Those two statements seem to contradict each other.
Which one is correct?