ACCA AA · Chapter 1 · Question 6 of 8
In an audit of financial statements, who has primary responsibility for preparing the financial statements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Management, with oversight from those charged with governance
Explanation
Management, overseen by those charged with governance, is responsible for preparing financial statements in accordance with the applicable framework. The external auditor's responsibility is to express an opinion on them. Shareholders receive the financial statements and internal audit is part of the entity's monitoring of controls.
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