Asked by Alexis Henderson on Apr 24, 2024
Verified
Management is not responsible for implementing internal controls and does not need to issue a report on internal controls.
Internal Controls
Initiatives and frameworks put in place by a company to assure the fidelity of financial and accounting figures, boost transparency, and prevent fraudulent practices.
Management
Management involves planning, organizing, directing, and controlling resources effectively to achieve organizational goals.
- Comprehend the importance of internal controls within corporate operations.
Verified Answer
ML
Matthew LorentzMay 02, 2024
Final Answer :
False
Explanation :
Management is responsible for implementing and maintaining effective internal controls, and is required to issue a report on the effectiveness of those controls as part of the company's financial statements. This report is known as the Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A), and it is filed with the Securities and Exchange Commission (SEC) along with the company's financial statements.
Learning Objectives
- Comprehend the importance of internal controls within corporate operations.
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