Which of the Following Management Responsibilities Is Not Established Under

question 33

Multiple Choice

Which of the following management responsibilities is not established under PCAOB standards?

• A) To present a written assessment of the effectiveness of the company's internal control over financial reporting as of the end of the company's most recent fiscal year.
• B) To accept responsibility for the effectiveness of the company's internal control over financial reporting.
• C) To evaluate the effectiveness of the company's internal control over financial reporting using suitable criteria.
• D) To perform cost-benefit analysis with respect to internal controls relating to assertions having a material effect on the financial statements.
• E) To support it's evaluation of internal control with sufficient evidence, including documentation.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but instead retained by the company to be reinvested in its core business or to pay debt.

Net Income

The total profit of a company, after all expenses and taxes have been subtracted from total revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Common Stock

Equity ownership in a corporation, offering voting rights and dividends to shareholders, subordinate to preferred stock.