Responsibility for the preparation of the financial information of a company rests with:
A) The Auditors.
B) Management.
C) The Auditors and Management jointly.
D) The Auditors and the Board of Directors jointly.
E) Management and Representatives from ASIC.

Question

Quizplus · Accepted Answer

The primary responsibility for the preparation of financial information lies with the management. The management is entrusted with maintaining the financial records, preparing financial statements, and ensuring compliance with accounting standards and regulatory requirements. The auditors' role is to provide an independent opinion on the fairness and accuracy of financial statements prepared by the management. And, while the board of directors plays an oversight role, they are not primarily responsible for the accuracy of financial information. ASIC's role is to oversee compliance with corporate laws and regulations, but they do not prepare financial information for companies.

Responsibility for the Preparation of the Financial Information of a Company