Which of the following is NOT the responsibility of a company's directors?
Correct answer: D. Reporting to the shareholders on the accuracy of the accounts
- A. Supplying information and explanations to the auditor
- B. Establishment of internal controls
- C. Keeping proper accounting records
- D. Reporting to the shareholders on the accuracy of the accounts
Explanation
The auditor, not the directors, reports independently to shareholders on the financial statements. Directors are responsible for accounting records, internal controls, and providing the auditor with necessary information and explanations.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Auditing
162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Auditing questions
International auditing standards are issued by the______________?
Which of the following is not true about opinion on financial statements?
When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
Why do auditors concentrate their efforts on material items in accounts?
The concept of stewardship means that a company's directors________________?
The fundamental objective of the audit of a company is to_____________?