The responsibility for designing and maintaining policies and procedures to identify,evaluate,and account for contingencies rests with whom?
A)management.
B)auditor.
C)audit committee.
D)client's attorney.

Question

Quizplus · Accepted Answer

It is the responsibility of management to design and maintain policies and procedures to identify, evaluate, and account for contingencies. This includes identifying potential risks and uncertainties that may impact the organization's financial statements and establishing procedures to ensure that such risks are appropriately disclosed in the financial statements. The auditor's role is to evaluate the adequacy of management's policies and procedures and assess the accuracy and completeness of the disclosures. The audit committee may also have oversight responsibilities in this area, but ultimately, the responsibility rests with management. The client's attorney may assist in identifying potential legal contingencies, but they would not typically be responsible for designing and maintaining policies and procedures related to contingency accounting.

The Responsibility for Designing and Maintaining Policies and Procedures to Identify,evaluate,and