Annual reports must include an internal control report.In this report,which group has the primary responsibility for establishing and maintaining an adequate control structure and procedures for financial reporting?
A)Management
B)The company's CPAs
C)The company's internal audit staff
D)The audit committee of the company's board of directors

Question

Quizplus · Accepted Answer

According to the Sarbanes-Oxley Act, management has the primary responsibility for establishing and maintaining adequate internal control over financial reporting. The internal control report in the annual report should disclose management's responsibility for the company's internal control and provide an assessment of its effectiveness. The other options (B, C, and D) may have a role in assessing or testing the company's internal control, but they do not have primary responsibility for establishing and maintaining it.

Annual Reports Must Include an Internal Control Report