Final answer:
The entity responsible for oversight in the financial reporting process is the audit committee, an integral part of the board of directors, ensuring the integrity of financial reports and conformity with legal standards.
Step-by-step explanation:
The party involved in preparing and auditing financial statements which provides oversight of the reporting process and other parties is c. Audit committee. The audit committee is a component of a company's board of directors that is responsible for overseeing both the internal and external audit functions. This committee also oversees the financial reporting process to ensure its integrity, and monitors the company's internal controls and compliance with legal and regulatory requirements.
Management, the internal auditors, and external auditors play crucial roles in the process, but they are overseen and held accountable by the audit committee. The committee ensures that the financial reports are accurate, reliable, and do not contain any significant misstatements. In the case of Lehman Brothers, the failure in corporate governance highlights the importance of diligent oversight by the audit committee and other governance institutions.