Controls Are Not Designed to Provide Assurance That

question 82

Multiple Choice

Controls are not designed to provide assurance that:

• A)Transactions are executed in accordance with management's authorization.
• B)Fraud will be eliminated.
• C)Access to assets is permitted only in accordance with management's authorization.
• D)The recorded accountability for assets is compared with the existing assets at reasonable intervals.

---

Definitions:

Financial Reporting

Financial reporting involves the disclosure of financial information to the various stakeholders about the financial performance and position of an organization over a specific period.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, which are a set of accounting standards used for financial reporting.

Norwalk Agreement

An agreement between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to make their existing financial reporting standards fully compatible as soon as practicable and to coordinate their future work programs to ensure compatibility.