The Responsibility for Adopting a Sound and Appropriate Financial Reporting

question 56

Multiple Choice

The responsibility for adopting a sound and appropriate financial reporting framework and corresponding accounting policies,maintaining adequate internal controls,and making fair representations in the financial statements rests

• A)with management.
• B)with the auditor.
• C)equally with management and the auditor.
• D)with the internal audit department.

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Definitions:

Balanced Equation

An equation in chemistry that shows the same number of atoms of each element in the reactants and products, maintaining mass conservation.

Ethanol

A volatile, flammable, colorless liquid alcohol, used as a solvent and in the manufacture of organic chemicals and biofuels.

Methanol

A simple alcohol with the formula CH₃OH, used as a solvent, antifreeze, fuel, and as feedstock for chemical synthesis.

Balanced Equation

A chemical equation in which the number of atoms for each element is the same on both the reactant and product sides.