Internal controls are crucial to companies that convert from U.S. GAAP to IFRS because of all of the following risks except:
A) Ineffective communication of the change to investors, creditors, and others.
B) Possible misstatement of financial information.
C) Management's inability to certify the effectiveness of the controls.
D) Possible fraud.
E) Controls are significantly different across the globe.

Question

Quizplus · Accepted Answer

The other four risks listed are valid concerns when converting from U.S. GAAP to IFRS, but the differences in internal controls across the globe are not specifically related to the conversion process. While there may be some differences in internal controls between U.S. GAAP and IFRS, these differences are not significant enough to warrant specific concern in this context.

Internal Controls Are Crucial to Companies That Convert from U