The financial statements are NOT likely to correctly reflect applicable accounting standards if:
A) the company's controls do not promote effectiveness.
B) the company's controls do not promote efficiency.
C) the controls affecting the reliability of financial reporting are inadequate.
D) all of the above

Question

Quizplus · Accepted Answer

The controls affecting the reliability of financial reporting are necessary for accurate financial statements. If these controls are inadequate, the financial statements may not reflect the applicable accounting standards. Choices A and B refer to controls that may promote effectiveness and efficiency but do not necessarily affect the accuracy of financial reporting.

The Financial Statements Are NOT Likely to Correctly Reflect Applicable