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:

Mix Of Operations

The combination of different processes, activities, and tasks used by an organization to produce goods or provide services.

Restructuring

The process of significantly modifying the organizational, operational, or financial structure of a company to improve its efficiency and effectiveness.

Liquidation

is the process of bringing a business to an end and distributing its assets to claimants, often resulting from bankruptcy.

Divestiture

The process of selling off a business division, investment, or asset by a company, often as a strategy to focus on core operations, cut losses, or raise capital.