Which Statement About Internal Controls Is FALSE

question 161

Multiple Choice

Which statement about internal controls is FALSE?

• A)Public companies must issue a report on internal control.
• B)Outside auditors must evaluate and report on the soundness of a company's internal controls.
• C)The Public Company Accounting Oversight Board oversees the audits of public companies.
• D)Because reports on internal control are issued with the financial statements, an accounting firm may both audit a public client and provide certain consulting services for the same client.

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Definitions:

Overhaul

A thorough examination and necessary repair or updates to machinery, systems, or processes to ensure efficient operation.

Installation Costs

Expenses associated with setting up or fitting equipment, machinery, or systems for use, including labor and materials.

Purchase Price

The amount of money paid to buy an asset, security, or other item of value.

Capital Expenditures

Investments in physical assets like equipment, buildings, and property to enhance or acquire new business operations.