Who is the responsible party for the adequacy of the disclosure in the financial report and accompanying footnotes?
A) Auditor in charge of fieldwork.
B) Management of the entity.
C) Auditor who signs the auditor's report.
D) Audit clerk who assists in preparing the report and footnotes.

Question

Quizplus · Accepted Answer

Management of the entity is responsible for the adequacy of the disclosure in the financial report and accompanying footnotes. The auditor's role is to provide reasonable assurance that the financial report is free from material misstatement, but the responsibility for the content and accuracy of the financial report rests with the management of the entity.

Who Is the Responsible Party for the Adequacy of the Disclosure