Asked by lizzy rybarczyk on Jul 12, 2024
Verified
In the Management Report contained in the audited annual report, management acknowledges its responsibility for all of the following except
A) preparing and presenting the financial statements
B) correcting all internal control deficiencies prior to issuance of the financial statements
C) designing and maintaining appropriate internal controls
D) evaluating the effectiveness of the internal controls
Management Report
Internal documents prepared by a company's management containing detailed financial and operational information.
Financial Statements
Written reports that quantitatively describe the financial health of a company, including the balance sheet, income statement, and cash flow statement.
Control Deficiencies
Refers to weaknesses in a company's internal controls that could lead to operational inefficiencies or financial misstatements.
- Understand the financial reporting process and the role of management and the audit committee.
Verified Answer
PM
Pavel MakarevichJul 19, 2024
Final Answer :
B
Explanation :
While management is responsible for identifying and disclosing any internal control deficiencies, they are not required to correct all deficiencies prior to issuance of the financial statements. Management is responsible for preparing and presenting the financial statements, designing and maintaining appropriate internal controls, and evaluating the effectiveness of the internal controls.
Learning Objectives
- Understand the financial reporting process and the role of management and the audit committee.