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 not required to identify controls related to the financial reporting process.
C)The auditor reviews management's assessment of internal controls and expresses an opinion on the effectiveness of the company's internal controls over financial reporting.
D)The accounting firm performing the financial statement audit is not permitted to perform the audit of internal controls over financial reporting.

Question

Quizplus · Accepted Answer

The auditor is required to review management's assessment of internal controls over financial reporting and express an opinion on the effectiveness of those controls. Choice A is incorrect because auditors are responsible for designing and performing their own tests of internal controls. Choice B is incorrect because management is required to identify and assess internal controls related to the financial reporting process. Choice D is incorrect because the same accounting firm can perform both the financial statement audit and the audit of internal controls over financial reporting.

For Public Companies in the U