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 ultimately responsible for ensuring that the financial statements are accurate and complete. The auditor's responsibility is to provide assurance on the financial statements, but management has the primary responsibility for preparing and presenting the financial statements in accordance with the applicable accounting standards and regulations. The SEC also plays a role in overseeing the financial reporting of publicly held companies, but the primary responsibility lies with company management.

The Primary Responsibility for the Adequacy of Disclosures in the Financial