In addition to ethical practices, management has an obligation to maintain a set of processes and procedures to assure accurate financial reporting and protection of company assets.This obligation arises because:
A)Many groups have expectations of management.
B)Management has a stewardship obligation to investors.
C)Management has an obligation to provide accurate reports to non-investors.
D)All of the above are reasons for the obligation.

Question

Quizplus · Accepted Answer

All of the reasons listed are valid justifications for management's obligation to maintain processes and procedures for accurate financial reporting and protection of company assets. Many different groups, such as shareholders, creditors, and employees, have expectations of management to provide reliable financial information. As stewards of investor capital, management has a fiduciary responsibility to ensure the proper use and protection of company assets. Accurate financial reporting is also necessary for non-investors, such as regulatory agencies and the general public, to make informed decisions about a company's operations.

In Addition to Ethical Practices, Management Has an Obligation to Maintain