A Report on Internal Control Effectiveness by the Management Team

question 15

Multiple Choice

A report on internal control effectiveness by the management team of public companies is required by:

• A)the Sarbanes-Oxley Act of 2002.
• B)the PCAOB.
• C)the AICPA.
• D)the auditors.

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Definitions:

Income and Loss Sharing

A method of partnership where profits and losses are distributed among partners according to their agreed-upon percentages or capital contributions.

Noncash Assets

Assets that cannot be easily converted into cash, such as real estate, equipment, and intellectual property.

Liquidated

The process of converting assets into cash or paying off liabilities in the process of closing or restructuring a business.

Capital Balances

The amount of money in a company's accounts that represents the capital contributed by the owners or shareholders.