Annual Reports Must Include an Internal Control Report

question 96

Multiple Choice

Annual reports must include an internal control report.In this report,which group has the primary responsibility for establishing and maintaining an adequate control structure and procedures for financial reporting?

• A)Management
• B)The company's CPAs
• C)The company's internal audit staff
• D)The audit committee of the company's board of directors

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Definitions:

Relational Dynamics

The patterns and processes that characterize interactions and relationships between individuals or groups.

Reactance Theory

A psychological concept suggesting that people often have negative reactions to being forced or pressured to change their behavior, feeling a need to regain control or freedom.

Precontemplation Stage

The precontemplation stage is a phase in behavior change models where an individual is not yet considering change or is unaware of the need for change.

Introspection

The examination or observation of one's own mental and emotional processes.