Which statement about a company's internal controls over financial reporting is FALSE?
A)Management must determine whether the internal controls over financial reporting are effective.
B)Management is responsible for maintaining an adequate system of internal control over financial reporting.
C)The internal controls over financial reporting are established by the outside auditors.
D)The internal controls over financial reporting are assessed by management.

Question

Quizplus · Accepted Answer

Internal controls over financial reporting are established by the company's management, not by outside auditors. Auditors evaluate and test the controls but do not establish them.

Which Statement About a Company's Internal Controls Over Financial Reporting