Management Assesses Its Internal Control and Issues a Report on the Effectiveness

question 38

Multiple Choice

Management assesses its internal control and issues a report on the effectiveness of internal controls in connection with the audit of its financial statements.This report includes

• A)a statement of management's responsibility for establishing and maintaining adequate internal controls over financial reporting
• B)management's opinion on the effectiveness of internal controls over financial reporting
• C)a statement identifying the framework used by the auditors to evaluate the effectiveness of internal controls over financial reporting
• D)a statement that the registered public accounting firm that audited the company's financial statements has issued an attestation report on management's opinion of the company's internal controls over financial reporting

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Definitions:

PV Function

In financial analysis, a function used to calculate the Present Value of a series of future payments or receivables, discounted at a given interest rate.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Defined Name

A feature in spreadsheet software that allows users to assign a meaningful name to a cell, range of cells, formula, or constant value.

Scope

The extent to which variables, functions, and declarations are visible or able to be used within a portion of a program.