Which of the following is not a condition that must be met for an internal control examination?
A) Management accepts responsibility for the effectiveness of its internal control.
B) Management must base its evaluation of internal control on standards established by the AICPA.
C) Management's evaluation of control can be supported by sufficient evidence.
D) Management presents a written assertion about the effectiveness of its internal control.

Question

Quizplus · Accepted Answer

While management must evaluate internal control based on established criteria, it does not have to be based on specific standards established by the AICPA. The standards may come from other sources such as the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The other three conditions listed (accepting responsibility, evidence support, and written assertion) are all necessary for an internal control examination.

Which of the Following Is Not a Condition That Must