Who is ultimately responsible for the accuracy of a company's financial statements?

Question

Quizplus · Accepted Answer

Management is ultimately responsible for the accuracy of a company's financial statements. They are responsible for preparing and presenting financial statements in accordance with generally accepted accounting principles (GAAP) and providing assurances that the financial statements are accurate and complete. While external auditors provide an additional level of assurance, ultimately management must ensure the accuracy of the financial statements. The Board of Directors also has a role in overseeing the financial reporting process, but they rely on management to provide accurate and complete information. The PCAOB is a regulatory body that oversees the external auditors, but they do not have direct responsibility for the accuracy of a company's financial statements.

Who Is Ultimately Responsible for the Accuracy of a Company's