The concept of stewardship means that a company's directors________________?
Correct answer: B. Safeguard the company's assets and manage them on behalf of the shareholders
- A. Are responsible for ensuring that the company complies with the law
- B. Safeguard the company's assets and manage them on behalf of the shareholders
- C. Are responsible for ensuring that the company pays its tax by the due date
- D. Report suspected fraud and money laundering to the authorities
Explanation
Stewardship means directors control and protect company resources as trustees for the shareholders. Legal compliance and tax payment are duties, but they do not express the wider meaning of stewardship.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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