For which of the following reasons are internal controls over financial reporting (ICFRs) necessary?
A) ICFRs mitigate fraud risk.
B) ICFRs guide internal review of financial data.
C) ICFRs help firms avoid losses of reputation and stock prices.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Internal controls over financial reporting (ICFRs) are necessary for all the reasons listed: they mitigate fraud risk, guide internal review of financial data, and help firms avoid losses of reputation and stock prices.

For Which of the Following Reasons Are Internal Controls Over