Answer (B) is correct . Establishing and maintaining internal control is the responsibility of management. Internal control is intended to provide reasonable assurance that the entity’s objectives are achieved. Achievement of these objectives is the basic function of management.
Answer (A) is incorrect because Auditors must consider internal control, but they do not establish and maintain it.
Answer (C) is incorrect because The controller is responsible only to the extent that (s)he is a part of the management team.
Answer (D) is incorrect because The treasurer is responsible only to the extent that (s)he is a part of the management team.
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