Question

Primary responsibility for the adequacy of financial statements disclosures rests with ________.

• A. auditor
• B. management
• C. auditor's staff
• D. central government

Answer 1

Answer: (B)

The primary responsibility for the adequacy of disclosure in the financial statements of an issuer rests with the Management. (Management is responsible for the accounting policies and the internal control of an entity, including the accounting system. Accordingly, management has the primary responsibility for the fairness of presentation of the financial statements in accordance with GAAP.)