Management's statement of responsibility:

Question

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Management's statement of responsibility typically refers to the company's system of internal controls, highlighting their responsibility for establishing and maintaining a system that provides reasonable assurance that transactions are properly recorded, financial statements are accurate, and assets are safeguarded. It does not include a disclaimer of responsibility for the level of the P/E ratio or provide an opportunity for the president to explain profit changes. Additionally, while auditors may report on the effectiveness of the company's internal control system, management is ultimately responsible for it.

Management's Statement of Responsibility