Which of the following factors has the greatest effect on the reliability of financial statements?
A)The size of the client
B)The industry of the client
C)The client's internal control structure.
D)The client's trend of earnings.

Question

Quizplus · Accepted Answer

The client's internal control structure has the greatest effect on the reliability of financial statements. This is because a strong internal control system helps ensure that financial information is accurate and reliable, whereas weak internal controls make it easier for errors or fraud to occur. While client size and industry can also impact the reliability of financial statements, they are not as significant as the client's internal control structure. The client's trend of earnings is also important, but it primarily affects the usefulness of financial statements rather than their reliability.

Which of the Following Factors Has the Greatest Effect on the Reliability