Which Statement About Internal Controls Is FALSE

question 51

Multiple Choice

Which statement about internal controls is FALSE?

• A)Public companies must issue a report on internal control with their financial statements.
• B)Outside auditors much evaluate and report on the soundness of a company's internal controls.
• C)The Sarbanes-Oxley Act requires public companies to issue a report on internal control.
• D)Public companies do not have to evaluate the effectiveness of internal controls.

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Definitions:

Prisoners' Dilemma

A concept in game theory where two individuals acting in their own self-interest do not produce the optimal outcome.

Tacit Collusion

A form of collusion in which businesses subtly coordinate actions without explicit agreement, aiming to raise prices or stabilize market conditions.

Legal

Pertains to matters governed by law, statutes, or regulations and recognized or enforced by a judicial system.

Tit-For-Tat Strategy

A cooperative, reciprocative strategy in game theory where an entity responds to an opponent's action with similar action.