Who holds the primary responsibility for the fair presentation of financial statements?

The primary responsibility for the fair presentation of financial statements lies with management. Management is tasked with ensuring that the financial statements accurately reflect the organization's financial position and performance in accordance with the applicable financial reporting framework. This includes implementing appropriate internal controls, preparing and presenting the statements, and making material judgments related to accounting estimates.

While other parties such as the governing board and audit committee play crucial roles in overseeing the financial reporting process, it is ultimately management that is responsible for the preparation and presentation of the financial statements. The independent auditor's role is to provide an objective assessment of whether the financial statements are free from material misstatement and are presented fairly, but they do not assume responsibility for the accuracy of the financial statements themselves. Therefore, management's accountability is fundamental in ensuring the transparency and integrity of financial reporting.