Financial statements are prepared for the user.Which of the following best describes the responsibility for the preparation of financial statements?
A)They are the responsibility of management.
B)They are the responsibility of external auditors.
C)They are the responsibility of shareholders.
D)They are the responsibility of standard setters.

Question

Quizplus · Accepted Answer

Financial statements are the responsibility of management, as they are the ones who have access to the company's financial information and are expected to report it accurately and fairly to stakeholders. External auditors may review the financial statements prepared by management, but they do not have primary responsibility for their preparation. Shareholders and standard setters also do not have direct responsibility for preparation of financial statements.

Financial Statements Are Prepared for the User