AA – L2 – SA – Q2.10 – Directors’ Responsibilities

Identify non-responsibility of directors.

Question

Which of the following is NOT a responsibility of the directors in practice?

A Establishment of internal controls

B The supply of information and explanations to the auditor

C Drafting a written representation letter, if needed

D Safeguarding of a company’s assets

Answer

Explanation:
Directors are responsible for establishing internal controls (A), providing information to auditors (B), and safeguarding assets (D). While they provide the written representation letter, drafting it (C) is typically the auditor’s responsibility, with directors reviewing and signing. Thus, C is not a directors’ responsibility and is correct.

Tags: Directors Responsibilities, ICAG, Internal controls, Written Representation
Level: Level 2

Topic: Regulatory Framework and Audit Responsibilities

Uploader: Salamat Hamid