ExpertMedium2 marksMultiple Choice
ACCA · Question 03 · The context and purpose of financial reporting
Which of the following are the primary responsibilities of the directors of a limited liability company? (Select all that apply)
Which of the following are the primary responsibilities of the directors of a limited liability company? (Select all that apply)
Answer options:
A.
Preparation of the financial statements
B.
Expressing an independent opinion on the financial statements
C.
Implementing and maintaining internal controls
D.
Filing personal tax returns for all shareholders
How to approach this question
Distinguish between the roles of management (directors) and external parties (auditors).
Full Answer
The directors are responsible for managing the company, which includes maintaining proper accounting records, implementing internal controls, and preparing the financial statements. Auditors express the independent opinion.
Common mistakes
Assuming directors are responsible for the audit opinion.
Practice the full ACCA FA — Financial Accounting Practice Exam 2
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