Sarbanes-Oxley requires management to issue an internal control report that includes two specific items. Which of the following is one of these two requirements?
A) a statement that management is responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting
B) a statement that management and the board of directors are jointly responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting
C) a statement that management, the board of directors, and the external auditors are jointly responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting
D) a statement that the external auditors are solely responsible for establishing and maintaining an adequate system of internal control

Question

Quizplus · Accepted Answer

Sarbanes-Oxley requires management to issue an internal control report that includes a statement that management is responsible for establishing and maintaining an adequate internal control structure and procedures for financial reporting, as well as an assessment of the effectiveness of those controls. Option A correctly states one of these requirements. Option B and C are incorrect because they suggest a joint responsibility between management, the board of directors, and/or the external auditors, which is not accurate. Option D is incorrect because it suggests that the external auditors are solely responsible for establishing and maintaining internal controls, which is also not accurate.

Sarbanes-Oxley Requires Management to Issue an Internal Control Report That