What is the management of a company is responsible for?
A) Hiring the auditor.
B) Preparing the financial statements.
C) The audit workpapers.
D) Ensuring auditor independence.

Question

Quizplus · Accepted Answer

The management of a company is responsible for preparing the financial statements. The auditor's role is to provide an opinion on the fairness of the financial statements, but the responsibility for their preparation lies with the management of the company.

Answer: D
 The management of a company is responsible for ensuring auditor independence. This means that the management should not exert undue influence on the auditor and should ensure that the auditor is able to exercise professional judgment without fear of reprisal or retribution.

Therefore, the best choice is BD.

What Is the Management of a Company Is Responsible For