Which Statement About a Company's Internal Controls Over Financial Reporting

question 113

Multiple Choice

Which statement about a company's internal controls over financial reporting is FALSE?

• A)Management must determine whether the internal controls over financial reporting are effective.
• B)The internal controls over financial reporting are the responsibility of management.
• C)The internal controls over financial reporting are studied and assessed by management.
• D)The internal controls over financial reporting are established by the outside auditors.

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Definitions:

Interdependence

A condition where entities or individuals rely on each other to accomplish objectives, often resulting in mutual benefits and cooperation.

Complex

A term describing an entity or system that consists of many different and connected parts, exhibiting behaviors that emerge from the interactions of its individual components.

Simple

Easily understood or done; presenting no difficulty or complexity.

Cross-functional Team

A team composed of members from different departments or areas of expertise, working together towards a common goal.