The financial statements may not correctly reflect accounting frameworks such as GAAP or IFRS if the:
A)controls affecting the reliability of financial reporting are inadequate.
B)company's controls do not promote efficiency.
C)company's controls do not promote effectiveness.
D)company's controls do not promote compliance with applicable rules and regulations.

Question

Quizplus · Accepted Answer

The reliability of financial reporting depends on the effectiveness of the company's internal controls. If the controls are inadequate, the financial statements may not reflect the accounting frameworks such as GAAP or IFRS accurately.

The Financial Statements May Not Correctly Reflect Accounting Frameworks Such