A company's financial statements are the responsibility of:
A) The independent auditors
B) The shareholders
C) The accounting department
D) Management

Question

Quizplus · Accepted Answer

The management of the company is ultimately responsible for preparing and presenting accurate financial statements in accordance with generally accepted accounting principles (GAAP). While the independent auditors have a responsibility to provide an opinion on whether the financial statements are presented fairly in all material respects, they are not responsible for the preparation of the financial statements themselves. Shareholders may have a role in reviewing and approving the financial statements, but they are not ultimately responsible for their accuracy. The accounting department plays a critical role in preparing the financial statements, but they operate under the direction and oversight of management.

A Company's Financial Statements Are the Responsibility Of