Internal Controls Are Crucial to Companies That Convert from U

question 21

Multiple Choice

Internal controls are crucial to companies that convert from U.S.GAAP to IFRS because of all of the following risks except:

• A)Possible misstatement of financial information.
• B)Possible fraud.
• C)Controls are significantly different across the globe.
• D)Ineffective communication of the change to investors,creditors,and others.
• E)Management's inability to certify the effectiveness of the controls.

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Definitions:

Violations

Acts or instances of breaking or failing to comply with laws, rules, agreements, or conditions.

Unauthorized Practice Of Law

Engaging in legal advice, representation, or services by an individual not licensed to practice law in a jurisdiction.

Statutes

Written laws passed by a legislative body at the federal, state, or local level.

Practices

Regularly performed activities or procedures by individuals or organizations, often within a professional context to maintain or improve efficiency and quality.