The Report on the Effectiveness of Internal Control Over Financial

question 40

Multiple Choice

The report on the effectiveness of internal control over financial reporting for companies filing reports with the SEC in the U.S.must include which of the following elements?

• A)a statement that management is responsible for maintaining effective internal control over financial reporting and the auditor is responsible for assessing the effectiveness of the internal control
• B)a statement that the auditor is responsible for expressing an opinion on the effectiveness of internal control over financial reporting based on management's representations
• C)a statement that the audit was conducted in accordance with the standards of the Public Companies Accounting Oversight Board (United States)
• D)a statement that the standards of the AICPA require that the auditor plan and perform the audit to obtain reasonable assurance about the effectiveness of internal controls over the financial reporting process
• E)a statement that the auditor believes the audit provides a reasonable basis for his opinion
• F)both A and B
• G)both C and E
• H)both D and E

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Definitions:

Structural-functional Theory

A sociological theory that views society as a complex system whose parts work together to promote solidarity and stability.

Latent Functions

Unintended, unrecognized consequences of activities that help a system adjust.

Manifest Functions

The recognized and intended consequences of any social pattern, process, or structure.

Expressive Functions

Activities and roles focused on the emotional or relational aspects of a group or family, emphasizing support, communication, and emotional bonding.