Management Has Several Responsibilities That Are Important to the Auditor

question 70

Multiple Choice

Management has several responsibilities that are important to the auditor.One of these is that management is responsible for

• A)internal controls that prevent material misstatements due to fraud or error.
• B)maintaining control of evidence (such as confirmations)until assessed by the auditor.
• C)evaluating evidence against acceptable criteria.
• D)providing reasonable assurance that the financial statements are fairly stated.

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Definitions:

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and finally to the consumer.

Retailers

Retailers are businesses that sell goods or services directly to consumers, acting as the final link in the supply chain from manufacturers to consumers.

Consumers

Individuals or groups who purchase products or services for personal use rather than for manufacturing or resale.

Retail Partner

A business alliance between manufacturers and retail stores, where both parties work together to sell products to the end consumer, often involving special agreements or exclusive deals.