Public Reporting on the Effectiveness of Internal Control Over Financial

question 18

Multiple Choice

Public reporting on the effectiveness of internal control over financial reporting, as required by the Sarbanes-Oxley Act, includes:

• A)a statement that the public accounting firm that audited the financial statements has provided input on the design of internal controls.
• B)the auditor provides an opinion on whether the entity maintained, in all material respects, effective ICFR as of the specified date, based on the control criteria.
• C)an explicit statement as to whether management agrees with the public accounting firm's assessment of internal controls.
• D)a detailed statement describing changes or additions to the internal control environment that occurred in the current year.

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Definitions:

Price Floor

A government- or authority-set minimum price for certain goods or services, aimed at preventing prices from falling below a certain level.

Black Markets

Illegal trading of goods and services that occurs outside the official channels sanctioned by authorities.

Price Ceilings

An imposed limit on the price charged for a product or service, often set by government regulation to protect consumers from excessively high prices.

Market Intervention

Market intervention is the action taken by a government or a regulatory authority to affect the market for a particular good or service, typically to correct market failures.