The primary responsibility for the adequacy of disclosures in the financial report of a publicly held company rests with the:
A) management of the company.
B) partner assigned to the audit engagement.
C) Securities and Exchange Commission.
D) auditor in charge of the fieldwork.

Question

Quizplus · Accepted Answer

The management of the company is ultimately responsible for ensuring that all disclosures in the financial report are adequate and in compliance with accounting standards and regulations. The auditor's role is to provide reasonable assurance that the financial statements are free from material misstatements, but the responsibility for the content of the disclosures lies with the company's management. The SEC's role is to oversee and regulate the financial reporting of publicly held companies, and they may review and comment on the disclosures, but they are not primarily responsible for them. The auditor in charge of the fieldwork is responsible for designing and executing the audit plan, but again, management is ultimately responsible for the adequacy of the disclosures.

The Primary Responsibility for the Adequacy of Disclosures in the Financial