Final answer:
The responsibility for designing and implementing controls within a company typically falls on the board of directors, supported by auditing firms and influenced by outside investors. Together, these entities work to ensure financial accuracy and effective governance.
Step-by-step explanation:
In a company, the responsibility for designing and implementing controls typically lies with several key parties as part of corporate governance. The board of directors, who are elected by the shareholders, serve as the primary layer of oversight for a company's management and strategic direction, including the establishment of controls. They are instrumental in setting up the right systems to monitor and guide the company's executives. Additionally, external auditing firms play a vital role in assessing the company's financial records and verifying that internal controls are sufficient and effective. These firms provide an independent evaluation that can reinforce the credibility of the financial information presented to investors and the public. Lastly, outside investors, particularly institutional investors like mutual funds or pension funds, contribute to corporate governance by holding management accountable and sometimes influencing control mechanisms through their investment decisions and shareholder voting rights. These investors rely on accurate financial information to make informed decisions, reacting critically in cases such as the Lehman Brothers scandal, where governance and controls failed.