Which of the Following Is a Correct Statement About Internal

question 109

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 misstatements.
• D)The auditing standards define internal controls over financial statements as processes designed by management and others charged with governance to provide reasonable assurance that company responsibilities are met.

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Definitions:

Coronary Ligament

Peritoneal reflection from the liver to the diaphragm at the margins of the bare area of the liver.

Liver

A vital organ located in the upper right portion of the abdomen involved in numerous functions including detoxification, protein synthesis, and digestion.

Pancreatic Amylase

An enzyme produced by the pancreas and secreted into the small intestine, crucial for breaking down carbohydrates into simple sugars during digestion.

Maltose

A sugar composed of two glucose molecules bonded together, commonly produced during the digestion of starch.