Responsibility for the preparation of the financial information of a company rests with:
A) the auditors.
B) management.
C) the auditors and management jointly.
D) the auditors and the board of directors jointly.

Question

Quizplus · Accepted Answer

According to the Generally Accepted Accounting Principles (GAAP), management is responsible for the preparation and presentation of the company's financial statements. While auditors review and provide their opinion on the financial statements, they are not responsible for their preparation. The board of directors also plays a role in overseeing financial reporting and may have a role in approving financial statements, but their responsibility is not primary.

Responsibility for the Preparation of the Financial Information of a Company