Which of the Following Is Not Part of Management's Report

question 61

Multiple Choice

Which of the following is not part of management's report on internal controls?

• A)A statement that management is responsible for internal control.
• B)The framework used to evaluate internal control.
• C)An assessment of the effectiveness of the company's internal control.
• D)A statement indicating the extent of tests performed to assess controls.

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Definitions:

Income Tax Expense

The accounting term for income taxes due to federal, state, and local governments within a given fiscal period.

Cash Flow

The complete volume of cash flowing into and exiting a corporation, with a significant impact on its liquidity.

Operating Activities

Day-to-day business functions involved in running a company, typically reflected in the cash flow statement.

Dividends

Payments made by a corporation to its shareholder members, typically from profits or reserves.