Question

The primary responsibility for fair and accurate financial reporting rests with the:

a. board of directors.
b. SEC.
c. management.
d. auditors.

Answer 1

The correct answer is (D)

Step-by-step explanation:

Financial reporting is a complex task which requires an expert to handle them accurately. Companies make many changes in the real data to slip from government taxes and they usually report losses. Auditors are the one responsible to find discrepancies in the financial reporting. So, the primary responsibility rests with the auditors for accurate financial reporting.