Question

Management's statement of responsibility: Multiple Choice refers to the company's system of internal controls. emphasizes that the auditors are responsible for the financial statements. includes a disclaimer of responsibility for the level of the P/E ratio of the company's common stock. allows the president of the company to explain why profits changed.

Answer 1

Answer:

A. to the company's system of internal controls.

Explanation:

The statement of responsibility is a statement that is usually in line with the laid down rules and the regulation of the governing body. It is a statement of the procedures that shows that the management is able to maintain a good and effective internal controls over financial reports. These are to show how reliable the informations are and to see that proper authorizations are given for transactions and that assets are safe.