Identify a true statement regarding management's discussion and analysis $($MD&A$)$ provided in a company's annual report.

It includes disclosures regarding changes in the application of accounting principles made by the firm.

It discloses non$-$GAAP financial measures and key performance indicators used to assess the company's financial and operating results.

It explains that the responsibility for the fair presentation of financial statements lies with the management of the firm.

It provides analysis about each and every financial statement item and presents the analysis in the same sequence of the financial statements.