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)The internal controls over financial reporting are the responsibility of management.
C)The internal controls over financial reporting are studied and assessed by management.
D)The internal controls over financial reporting are established by the outside auditors.

Question

Quizplus · Accepted Answer

The statement that the internal controls over financial reporting are established by the outside auditors is false. The responsibility of establishing and maintaining effective internal controls over financial reporting lies with the company's management, not the auditors. The auditors' role is to assess the effectiveness of these controls and provide an opinion on the reliability of the company's financial statements.

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