Which is one aspect of management's assessment of internal control over financial reporting?
A)Have the external auditors document the internal control over financial reporting.
B)Have the external auditors test the effectiveness the internal control over financial reporting.
C)Evaluate the design of internal control over financial reporting.
D)Evaluate the design of the payroll system.

Question

Quizplus · Accepted Answer

Management should evaluate the design of internal control over financial reporting to determine if it is effective in preventing or detecting errors or fraud in financial reporting. This includes assessing whether the control activities are properly designed and implemented to achieve control objectives. Choices A and B are activities that external auditors may perform, but management is responsible for the overall assessment of internal control over financial reporting. Choice D is too narrow and specific, and not part of the broader assessment of internal control.

Which Is One Aspect of Management's Assessment of Internal Control