The audit of the financial statements does not relieve management or those charged with governance of those responsibilities.Select one:TrueFalse

The statement is True.

In a corporate context, the audit of financial statements serves as an independent examination of the financial reports prepared by the management of an entity. However, it is imperative to understand that the primary responsibility for the accuracy and completeness of those financial statements rests with management and those charged with governance.

An audit aims to provide reasonable assurance that the financial statements are free from material misstatements, whether due to fraud or error. Nonetheless, this does not shift the responsibility away from management or the board of directors. They are still accountable for establishing and maintaining effective internal controls, for the preparation of the financial statements in accordance with applicable accounting standards, and for complying with laws and regulations relevant to the organization. Thus, while audits are crucial for enhancing the reliability of financial reporting, they do not absolve management from their responsibilities.