The primary responsibility for the adequacy of disclosures in the financial statements of a publicly held company rests with the:
A)partner assigned to the audit engagement.
B)management of the company.
C)auditor in charge of the fieldwork.
D)securities and exchange commission.

Question

Quizplus · Accepted Answer

The management of the company is responsible for preparing the financial statements and ensuring that they are accurate and complete, including all necessary disclosures. The auditor's role is to provide an opinion on the fairness of the financial statements, but they are not responsible for preparing them or ensuring that all necessary disclosures are included. While the SEC has oversight authority over public companies, its role is not to provide the initial disclosure of information.

The Primary Responsibility for the Adequacy of Disclosures in the Financial