ExpertEasy1 markMultiple Choice
ACCA · Question 36 · Business & Technology
Section A
Who is primarily responsible for the preparation and fair presentation of a company's financial statements?
Section A
Who is primarily responsible for the preparation and fair presentation of a company's financial statements?
Answer options:
A.
The External Auditors
B.
The Internal Auditors
C.
The Shareholders
D.
The Directors / Management
How to approach this question
Remember that the people running the company (directors) must report on their stewardship by preparing the accounts.
Full Answer
D.The Directors / Management✓ Correct
Corporate governance and company law dictate that the board of directors (management) is responsible for preparing the financial statements and ensuring they give a true and fair view. The external auditor's role is merely to express an independent opinion on them.
Common mistakes
Believing the external auditors prepare the financial statements.
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