For public companies in the U.S. ,which statement is correct?
A)Auditors and management are jointly involved in designing tests of internal controls over financial reporting.
B)Management is required to identify controls related to the financial reporting process and to test the controls to determine whether they are effective at year-end.
C)The auditor expresses an opinion on the effectiveness of the company's internal controls over the financial statements.
D)The accounting firm performing the financial statement audit must not perform the audit of internal controls over financial reporting.

Question

Quizplus · Accepted Answer

Management is required by the Sarbanes-Oxley Act to evaluate the company's internal controls over financial reporting and report any material weaknesses to the auditors. The auditors then use management's evaluation to plan and perform their own audit of internal controls. However, the auditor does not express an opinion on the effectiveness of the company's internal controls, but rather on the fairness of the financial statements. The accounting firm performing the financial statement audit may also perform the audit of internal controls over financial reporting.

For Public Companies in the U