Which paragraph in the opinion on financial statements outlines management's responsibility?

The introductory paragraph is where the auditor outlines the overall responsibility for the financial statements, including management's role. This section typically indicates that management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework. It sets the stage for the auditor's work by clarifying that while management prepares the statements, the auditor’s role is to express an opinion on those financial statements based on their audit.

In this context, the scope paragraph pertains to the nature and extent of the audit, detailing the audit procedures performed and the basis for the auditor's opinions. The disclosure paragraph is not a standard term commonly found in audit reports and could lead to confusion about where management's responsibilities are highlighted. The opinion paragraph concludes the audit report with the auditor’s opinion on the financial statements, which does not focus on management’s responsibilities. The emphasis on management's responsibility in the introductory paragraph highlights its critical role in the financial reporting process.