Question

Primary responsibility for the adequacy of financial statement disclosures rest with the____________.

• A. auditor
• B. management
• C. auditor's staff
• D. central Government

Answer 1

The correct option is B management

The primary responsibility for the adequacy of disclosure in the financial statements of a company rests with the management. Management is the one who communicates with the outside world. It acts as a link between business and outside world. So primary responsibility lies with the management.