For Public Companies in the U

question 89

Multiple Choice

For public companies in the U.S. ,which statement is correct?

• A)Auditors and management are jointly involved in planning tests of internal controls over financial reporting.
• B)Management is not required to identify controls related to the financial reporting processed.
• C)The auditor expresses an opinion on the effectiveness of the company's internal controls over financial reporting without considering management's assessment of the effectiveness of internal controls over financial reporting.
• D)The accounting firm performing the financial statement audit must also perform the audit of internal controls over financial reporting.

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Definitions:

Sins of Commission

Errors or wrongdoings resulting from action taken, as opposed to inaction or omission.

Sins of Omission

Failures to act that result in negative outcomes or harm, often discussed in ethical or moral contexts.

Risky Shifts

A phenomenon observed in group decision-making processes, where groups tend to make riskier decisions than individuals would when alone.

Original Experiments

Experimental studies or research designed to test hypotheses by manipulating variables in a controlled environment for the first time.