Which of the following is true regarding management's documentation of internal controls?
A)Some documentation should focus on controls management has placed in operation to adequately address identified financial reporting risks.
B)Documentation should focus on controls over the interim financial reporting process.
C)Documentation must be done on paper.
D)Inadequate documentation is usually considered an insignificant deficiency in internal control.

Question

Quizplus · Accepted Answer

Management's documentation of internal controls should focus on controls placed in operation to adequately address identified financial reporting risks. This documentation should be thorough and accurate, but it does not necessarily have to be done on paper. Inadequate documentation is considered a deficiency in internal control. Documentation of controls over the interim financial reporting process may be necessary, but it is not the only focus of management's documentation of internal controls.

Which of the Following Is True Regarding Management's Documentation of Internal