What is one of the ways that the Canadian Auditing Standards (CASs)make management directly responsible for an organization's financial statements?
A)All listed company management must certify the accuracy of the evidence provided.
B)Management must implement and carry out development of high-quality internal controls.
C)Management must acknowledge and understand its responsibilities.
D)Companies must use internal auditors to assess the quality of the financial statements.

Question

Quizplus · Accepted Answer

One of the ways that the Canadian Auditing Standards make management directly responsible for an organization's financial statements is by requiring them to acknowledge and understand their responsibilities. This means that they cannot simply delegate their responsibilities to others, such as auditors or accountants. They must take an active role in ensuring the accuracy and completeness of the financial statements, and be aware of any risks or issues that may affect them. This helps to promote transparency and accountability in financial reporting. The other choices are not directly related to making management responsible for financial statements.

What Is One of the Ways That the Canadian Auditing