Question

I am needing the following questions answered based on General Motors Company (GM), using the 2019 fiscal year 10-k report

47. Who bears the responsibility for the integrity and the objectivity of the financial statements?

48. What does management say they are doing to assure the public that the financial information is reliable?

49. What is the responsibility of the Audit Committee of the Board of Directors?

Answer 1

A. The responsibility for the integrity and objectivity of the financial statements should be beared by the management of the organization. Management is solely responsible for the maintainance of the financial statements and to check whether all the accounts and financial statements and the process of preparation of financial statements are effective and accurate.

B. To ensure that the financial statements published by the organization are reliable or not a company must hire an accounting firm auditor from outside so that the reliability or the genuiness of the accounts can be assured. For this they will check whether all the provisions and principals required for the preparation of the financial statements has been followed by the company or not. It is also seen that there is nothing significant transaction which the company has not disclosed that will affect the earnings of the company.

C. The responsibility of the audit committee of the board of directors are:

1. To check the completeness of the accounts.

2. To ensure whether all the provisions and concepts has been followed or not.

3. To check the accuracy of financial statements.

4. To see whether all the significant information has been provided to them or not to assure the public that there investment is safe.