Which Party Has the Primary Responsibility to Oversee an Organization's

question 134

Multiple Choice

Which party has the primary responsibility to oversee an organization's financial reporting and internal control process?

• A) the board of directors
• B) the audit committee
• C) management of the company
• D) the financial statement auditors

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Definitions:

Nonprofit Organizations

Organizations that operate for charitable, educational, cultural, or social welfare purposes, using surplus revenues to further achieve their goals rather than distributing them as profit or dividends.

Revenue Over Expenses

A financial metric indicating profitability, where income surpasses the costs incurred in generating it.

Shareholders

Individuals or entities that own shares in a corporation, making them co-owners of the business and entitling them to dividends and certain rights.

Treasury

The department within a government or corporation responsible for managing financial operations, including revenue, expenditure, and debt.