Who under the oversight of the firm's governing board, prepares the financial statements?
A)independent auditor
B)Securities and Exchange Commission
C)Public Companies Accounting Oversight Board
D)general counsel
E)management

Question

Quizplus · Accepted Answer

Management is responsible for preparing the financial statements under the oversight of the firm's governing board. While independent auditors review and provide an opinion on the accuracy of the financial statements, it is the responsibility of the company's management to prepare them in accordance with accounting principles and provide full and fair disclosure of the company's financial position. The Securities and Exchange Commission and Public Companies Accounting Oversight Board have regulatory oversight over financial reporting, but they do not directly prepare financial statements. The general counsel would not typically be involved in preparing financial statements.

Who Under the Oversight of the Firm's Governing Board, Prepares