Week 2 - Responsibilities of Key Stakeholders

Which one is management not responsible for?

• The safeguarding of company assets

• Keeping proper accounting records

• Preparing financial statements

• Auditing financial statements

Auditors have a duty to detect frauds which have a material impact on the financial statements.

• True

• False

The Sarbanes–Oxley Act requires CEOs to certify that the accounts are true.

• True

• False

Management are responsible for making appropriate disclosures concerning related parties in the financial statements.

• True

• False

An auditor fulfils his duty to report a suspicious transaction in relation to money laundering if he makes a report to the money laundering nominated officer in his firm.

• True

• False

Which of the following is not a measure designed to close the expectations gap?

• Auditors required to attend company board meetings

• More detailed engagement letter sent to audit clients

• Auditor's report format revised and extended

• Statement of directors' responsibilities included in the financial statements

Auditors may be required to report instances of non-compliance with laws and regulations to which of the following?

• Police, government, shareholders

• Investors, directors and security commission

• Shareholders, directors and regulatory activities

• Government, public and directors