Most annual reports now include a report of management to the stockholders.In this report, which group has the primary responsibility for the preparation and integrity of the financial statements?
A) Management
B) The company's CPAs
C) The company's internal audit staff
D) The audit committee of the company's board of directors

Question

Quizplus · Accepted Answer

The primary responsibility for the preparation and integrity of the financial statements rests with management. They are responsible for ensuring the accuracy and completeness of the financial statements and the underlying data. The company's CPAs perform an independent audit to attest to the fairness of the presentation of the financial statements but are not responsible for their preparation. The company's internal audit staff assists management in ensuring the effectiveness of the company's internal controls but do not prepare financial statements. The audit committee of the company's board of directors is responsible for overseeing the audit process and providing oversight of management's financial reporting process, but they are not responsible for preparing the financial statements themselves.

Most Annual Reports Now Include a Report of Management to the Stockholders.In