Which of the following groups has the responsibility for identifying and deciding the appropriate accounting treatment for recording or disclosing contingent liabilities?
A) auditors
B) legal counsel
C) management
D) management and the auditors

Question

Quizplus · Accepted Answer

Management has the responsibility for identifying and deciding the appropriate accounting treatment for recording or disclosing contingent liabilities. Legal counsel may advise on the legal aspects of the liability, but management is responsible for determining the appropriate accounting treatment. Auditors may provide their opinion on the adequacy of the disclosure related to the contingent liability, but they do not make the decision on the appropriate accounting treatment.

Which of the Following Groups Has the Responsibility for Identifying