Shareholders
Board of directors
Debtors
Employees
Answer is Right!
Answer is Wrong!
The correct answer is: B. Board of directors
The board of directors is responsible for overseeing the management of a company and ensuring that it is run in the best interests of the shareholders. The board of directors appoints the company’s auditors and receives their reports. The auditors’ report is an important document that provides the board of directors with information about the company’s financial condition and performance.
The other options are incorrect because:
- Shareholders are the owners of a company. They elect the board of directors and have the right to vote on important matters, such as the election of directors and the approval of mergers and acquisitions. However, shareholders do not receive the auditors’ report directly. Instead, the board of directors receives the report and then decides whether to share it with the shareholders.
- Debtors are people or companies that owe money to a company. The company’s financial statements include information about the company’s debts, but the auditors’ report is not specifically addressed to debtors.
- Employees are people who work for a company. The company’s financial statements include information about the company’s employees, but the auditors’ report is not specifically addressed to employees.