The primary responsibility for the adequacy of disclosure in the financial statements of a publicly held company rests with the:
A)Partner assigned to the audit engagement.
B)Management of the company.
C)Auditor in charge of the fieldwork.
D)Securities and Exchange Commission.

Question

Quizplus · Accepted Answer

The management of the company is primarily responsible for the content and accuracy of the financial statements, including the adequacy of disclosure. The auditor's responsibility is to provide assurance on the financial statements, but not to create them. The SEC also plays a role in overseeing the financial reporting of publicly held companies, but management remains the primary party responsible for the financial statements.

The Primary Responsibility for the Adequacy of Disclosure in the Financial