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

question 116

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 adequate internal controls over financial reporting
• B)management's assessment of 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 on the company's internal controls over financial reporting

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Definitions:

Maturity Values

The amount that will be paid to the holder of a financial instrument at the time of its maturity, including principal and any accrued interest.

Market Rate

The prevailing interest rate available in the marketplace for securities or loans.

Long-term Bonds

Bonds issued with a maturity date typically more than ten years in the future, representing a long-term financial obligation.