Which of the following is a primary responsibility of management regarding compliance with laws and regulations?

The primary responsibility of management regarding compliance with laws and regulations is to ensure compliance with relevant laws and regulations. This responsibility stems from the fundamental role of management in setting the tone for ethical behavior and legal adherence within the organization. Management is accountable for establishing internal controls that help prevent non-compliance and must actively monitor and maintain these processes to ensure the company adheres to applicable legal requirements.

This proactive approach not only protects the organization from potential legal ramifications and financial penalties but also supports the integrity and reputation of the company. It is essential for management to take the lead in fostering a culture of compliance, which includes training staff, creating policies, and implementing procedures that align with relevant laws and regulations.

While reporting non-compliance to auditors, reviewing auditors' findings, and conducting audits of financial statements are important aspects of governance and oversight, they do not replace the foundational responsibility of management to ensure that the organization complies with laws and regulations in the first place.