Who bears ultimate responsibility for the financial statements?
A)Management of the organization, equally with the external auditor that audits the statements.
B)Management and the shareholders of the organization.
C)The external auditor that audits the statements.
D)Management of the organization.

Question

Quizplus · Accepted Answer

Management of the organization bears ultimate responsibility for the financial statements as they are responsible for maintaining accurate and complete financial records and ensuring the statements are presented fairly and in accordance with accounting standards. While the external auditor provides an independent opinion on the accuracy of the statements, they are not ultimately responsible for the content of the statements. Shareholders may have an interest in the accuracy of the statements, but they do not bear responsibility for them.

Who Bears Ultimate Responsibility for the Financial Statements