The accuracy of information included in notes that accompany the audited financial report of a company whose shares are traded on a stock exchange is the primary responsibility of:
A) the independent auditor.
B) the stock exchange officials.
C) the Securities and Exchange Commission.
D) the company's management.

Question

Quizplus · Accepted Answer

The accuracy of information included in notes that accompany the audited financial report is the primary responsibility of the company's management, who is responsible for preparing and presenting the financial statements. While the independent auditor has a responsibility to audit the financial statements and provide an opinion on their fairness, they are not responsible for ensuring the accuracy of the information in the notes, which is the responsibility of the company's management. The stock exchange officials and the Securities and Exchange Commission play a role in regulating the trading of shares and ensuring compliance with disclosure requirements, but they are not primarily responsible for the accuracy of the financial statements or notes.

The Accuracy of Information Included in Notes That Accompany the Audited