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

Question

Quizplus · Accepted Answer

Adequate controls affecting the reliability of financial reporting are necessary to ensure that the financial statements correctly reflect applicable accounting standards. If these controls are inadequate, there is a risk that the financial statements may contain errors or omissions, leading to a misstatement of financial results. The other options may impact the company's operations, but they are not directly related to the accuracy of the financial statements.

The Financial Statements Are NOT Likely to Correctly Reflect Applicable