Owner's Role in Financial Statement Preparation

Steps:

• Identify the context: The owner prepared draft financial statements for the year ended, likely in an accounting or auditing scenario.
• Recall relevant standards: Under IFRS or GAAP, management (often owners in small businesses) is responsible for preparing financial statements.
• Evaluate choices: Assume standard options involve who finalizes or audits statements (A: Auditor prepares; B: Owner finalizes; C: Management's responsibility; D: External review required).
• Select based on rules: Drafts by owner align with management's duty, but require review.

Why C is correct:

• Per IAS 1 (Presentation of Financial Statements), management prepares and is responsible for the financial statements.

Why the others are wrong:

• A: Auditors review, not prepare, statements (ISA 200).
• B: Owner's draft needs board/audit approval, not sole finalization.
• D: Drafts don't mandate immediate external review; it's post-preparation.

Not enough information on full question and choices for precise analysis.

Final answer: C