Which is NOT one of the responsibilities of management in ensuring accuracy and transparency in providing financial statements ?
a. Establish a framework for open timely communication with auditors.
b. record identified audit differences.
c. provide creative accounting solutions.
d. base business decisions on economic reality.
Answer is c. provide creative accounting solutions.
Responsibilities of Managements are:
A. Ensure the proper tone at the top with an expectation that only the highest quality financial reporting is acceptable
B. Review all elements of the company's internal control in light of changes in the company's business environment and with particular attention to significant financial statement areas
C. Ensure that appropriate levels of management involvement and review exist over key accounting policy and financial reporting decisions.
D. Establish a framework for open, timely communication with the auditors and the audit committee on all significant matters.
E. Strive for the highest-quality, most transparent accounting and disclosure- in both financial statements and management discussion and analysis
F. Make sure estimates and judgements are supported by reliable information and the most reasonable assumptions in the circumstances and that processes are in place to ensure consistent application from period to period.
G. Record identified audit differences
H. Base business decisions on economic reality than on accounting goals
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