Which of the Following Statements Is True Regarding the SEC's

question 58

Multiple Choice

Which of the following statements is true regarding the SEC's 2007 interpretive release to management for assessing and reporting on the effectiveness of ICFR?

• A) Examples of specific management documentation are provided in the release.
• B) If controls appropriately address risks, indicating design effectiveness, management tests the controls to assess operating effectiveness.
• C) The overall system of ICFR may be deemed effective if one or only a few material misstatements are identified.
• D) Management only needs to test those controls that are ineffective in the prevention of material misstatements in the financial statements.

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Definitions:

Values

Core beliefs or principles that guide behavior and decision-making.

Symbols

Symbols are representations or signs used to signify ideas, objects, or relationships.

Norms

The unwritten rules that dictate the acceptable behavior within a society, group, or organization.

Prejudice

Preconceived opinion or judgment without sufficient knowledge, often leading to discrimination or biased treatment of others.