Those Charged with Governance Are Accountable for Ensuring That the Entity

question 24

Multiple Choice

Those charged with governance are accountable for ensuring that the entity achieves its objectives with regard to which of the following?

• A) Compliance with applicable laws
• B) The reliability of financial reporting
• C) Both a and b
• D) None of the above

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has its own rights, privileges, and liabilities independent of its shareholders.

American Red Cross

A humanitarian organization that provides emergency assistance, disaster relief, and education inside the United States.

Accounting Records

Documents and books that keep track of all financial transactions of an entity.

Certification

A formal process by which an individual or system is verified to meet certain predefined criteria, often related to quality, education, or skills.