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:

Progressed

Having moved forward or developed in terms of growth, improvement, or achievement.

Nations

Nations are large groups of people who share common history, culture, language, or ethnic origin, often occupying a particular territory or state.

Physical Capital

Tangible assets used in the production of goods and services, such as machinery and buildings.

Economic Sense

The logic or rationale behind economic decisions or policies, often evaluated in terms of benefits versus costs.