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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Definitions:

Torque Rods

Longitudinal rods in truck and bus suspension systems that help manage the alignment of the axle, prevent excessive movement, and assist in absorbing road shock.

Centerbolts

Fasteners used to secure leaf springs in a suspension system, aligning the springs with the axle.

Fiber-composite Leaf Springs

Vehicle suspension elements made from fiber-reinforced composite materials, offering durability and weight savings over metal springs.

Unsprung Weight

The weight of vehicle components not supported by the suspension system, including wheels, tires, and brake assemblies.