Which statement about internal controls is FALSE?
A)Public companies must issue a report on internal control with their financial statements.
B)Outside auditors much evaluate and report on the soundness of a company's internal controls.
C)The Sarbanes-Oxley Act requires public companies to issue a report on internal control.
D)Public companies do not have to evaluate the effectiveness of internal controls.

Question

Quizplus · Accepted Answer

This statement is false because public companies are required to evaluate the effectiveness of their internal controls under the Sarbanes-Oxley Act. They are also required to disclose any material weaknesses in their internal controls in their annual report.

Which Statement About Internal Controls Is FALSE