Which Statement About a Company's Internal Controls Over Financial Reporting

question 106

Multiple Choice

Which statement about a company's internal controls over financial reporting is FALSE?

• A)Management must determine whether the internal controls over financial reporting are effective.
• B)Management is responsible for maintaining an adequate system of internal control over financial reporting.
• C)The internal controls over financial reporting are established by the outside auditors.
• D)The internal controls over financial reporting are assessed by management.

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Definitions:

Contingency

A future event or circumstance that is possible but cannot be predicted with certainty.

Depends Upon

A phrase indicating that the outcome is influenced or determined by a specific factor or condition.

CS Predict

The ability of a conditioned stimulus (CS) to predict the occurrence of an unconditioned stimulus, forming the basis of classical conditioning.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, first demonstrated by Ivan Pavlov.