Which of the Following Is a Correct Statement About Internal

question 50

Multiple Choice

Which of the following is a correct statement about internal controls?

• A)The internal control function in a company is a process designed by management and others charged with governance to provide reasonable assurance that the financial statements are prepared in accordance with the COSO financial reporting framework.
• B)Management develops internal controls to prevent misstatements in the financial statements.
• C)The auditor reviews the internal controls developed by management to assess whether the internal controls are effective in preventing or detecting misstatements.
• D)The auditing standards define internal controls over financial statements as processes designed by management and others charged with governance to provide assurance that company responsibilities are met.

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Presentation

The act of showing or displaying information or a product to an audience in a structured manner for understanding or consumption.

Ad

Short for advertisement, a promotional message or material designed to attract interest in a product, service, or event.

Permanent Change

A lasting transformation that alters the state or condition of something or someone in a significant way.

Learning

The acquisition of knowledge or skills through study, experience, or teaching, which leads to a change in behavior or understanding.