Question

In: Accounting

he financial statements are the responsibility of​ _________, and the responsibility of the​ _____________ is to...

he financial statements are the responsibility of​ _________, and the responsibility of the​ _____________ is to express an opinion on the financial statements based on the audit.

A.

​management, SEC

B.

​management, auditor

C.

​auditor, management

D.

​SEC, auditor

Solutions

Expert Solution

Answer: Option B. Management, Auditor

Preparation of financial statement is the responsibility of the management of the company. Management can not shift the responsibility on the auditor about the financial statements.

Whereas, it's not auditor responsibility to prepare financial statements. Auditor responsibility is to express opinion on financial statement by conducting an audt through several procedure.

Therefore, The financial statements are the responsibility of Management, and the responsibility of auditor is to express an opinion on the financial statements based on audit.

ekkarill92 answered 2 years ago
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