Who Is the Responsible Party for the Adequacy of the Disclosure

question 17

Multiple Choice

Who is the responsible party for the adequacy of the disclosure in the financial report and accompanying footnotes?

• A) Auditor in charge of fieldwork.
• B) Management of the entity.
• C) Auditor who signs the auditor's report.
• D) Audit clerk who assists in preparing the report and footnotes.

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Definitions:

Economic Questions

Fundamental questions addressing how an economy decides on what to produce, how to produce it, and for whom to produce, reflecting allocation of resources.

Government

The system or group of people governing an organized community, often a state, including institutions and officials that make and enforce laws.

Fuel Economy Standards

Regulations set by the government to improve the average fuel efficiency of cars and light trucks.

Market Economy

A system where the prices of goods and services are determined by supply and demand, rather than by government intervention.