Which of the following is responsible for establishing a private company's internal control?
A)Senior Management
B)Internal Auditors
C)FASB
D)Audit committee

Question

Quizplus · Accepted Answer

Senior management is responsible for designing, implementing, and maintaining effective internal control over financial reporting (ICFR) within a private company. They have the ultimate responsibility to ensure that the company's financial statements are accurate and reliable. Internal auditors and the audit committee can provide oversight and assurance on the effectiveness of the internal control system, but the responsibility for establishing it rests with senior management. FASB, on the other hand, sets accounting standards but does not have a direct role in establishing internal control.

Which of the Following Is Responsible for Establishing a Private