Question

The sole responsibility of management with regard to financial reporting involves preparing and presenting financial statements in accordance with the applicable financial reporting framework.

Answer 1

Answer:

True

Explanation:

The management of an enterprise has a duty to prepare the result of their operation for each defined period in accordance with the financial reporting standards for the external auditors appointed by the directors to independently verify correctness of the figures with the underlying records.

It must be noted here that in practice, while the management prepare the financial report, the directors are to lay the report before the shareholders in the annual general meeting.