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

The Canadian Auditing Standards (CASs) require that management acknowledge and understand their responsibilities for the preparation and presentation of financial statements. This makes management directly responsible for ensuring the accuracy and completeness of the financial statements. CASs also require management to implement and carry out development of high-quality internal controls, but this is not the only way that CASs make management directly responsible for financial statements. Option A is incorrect because the requirement for listed company management to certify the accuracy of evidence provided is a requirement of securities legislation, not CASs. Option D is incorrect because the use of internal auditors to assess the quality of financial statements is not a requirement of CASs.

What Is One of the Ways That the Canadian Auditing