Which of the following is NOT a responsibility of the finance department?

• A. Budgeting and forecasting
• B. Preparing financial statements
• C. Managing cash flow
• D. Conducting external audits

Answer: (D)

Verified step by step guidance

1. Understand the roles and responsibilities of the finance department. These typically include tasks such as budgeting and forecasting, preparing financial statements, and managing cash flow.
2. Recognize that conducting external audits is generally not a responsibility of the finance department. Instead, external audits are performed by independent auditing firms to ensure the accuracy and compliance of financial statements.
3. Differentiate between internal and external responsibilities. The finance department focuses on internal financial management, while external audits are conducted by third parties.
4. Review the options provided in the question and identify which task does not align with the typical responsibilities of the finance department.
5. Conclude that 'Conducting external audits' is the correct answer, as it is not a responsibility of the finance department.