Management's primary responsibility with respect to financial statements is to
A) prepare them, as they have the best insight and know what should be included.
B) audit them, as they are distant enough from daily operations.
C) rely on them to make decisions.
D) None of the above are true.

Question

Quizplus · Accepted Answer

Management is responsible for preparing financial statements because they are in the best position to know the operations, financial condition, and actual results of the organization. This responsibility includes ensuring that the financial statements are accurate and comply with applicable accounting standards. Auditing is typically performed by an independent party, not management, to ensure the accuracy and fairness of the financial statements.

Management's Primary Responsibility with Respect to Financial Statements Is to