Which of the Following Statements Is NOT True

question 10

Multiple Choice

Which of the following statements is NOT true?

• A)Management must state that the internal controls of the company have been audited by the outside auditors.
• B)The outside auditors examine the financial statements and the internal controls over financial reporting.
• C)Management issues the audit report.
• D)The audit report is addressed to the board of directors and stockholders of the company.

---

Definitions:

Limited Liability Company

A business structure that combines the liability protection of a corporation with the tax benefits of a partnership.

Tax Advantages

Tax advantages are financial benefits that reduce the amount of tax owed by individuals or businesses, often through deductions, exemptions, or credits.

Liability Advantages

pertains to the benefits or favorable conditions arising from the structuring of legal entities or arrangements to minimize legal responsibility or financial risk.

Limited Liability Company

A company setup that integrates the sole proprietorship or partnership's pass-through tax feature with a corporation's limited liability protection.