The responsibility for adopting a sound and appropriate financial reporting framework and corresponding accounting policies,maintaining adequate internal controls,and making fair representations in the financial statements rests
A)with management.
B)with the auditor.
C)equally with management and the auditor.
D)with the internal audit department.

Question

Quizplus · Accepted Answer

The responsibility for adopting a sound and appropriate financial reporting framework and corresponding accounting policies, maintaining adequate internal controls, and making fair representations in the financial statements ultimately lies with management. This responsibility cannot be delegated or transferred to the external auditor or internal audit department. However, the external and internal auditors can provide assurance on the effectiveness of management's controls and the accuracy of financial reporting.

The Responsibility for Adopting a Sound and Appropriate Financial Reporting