If a budgetary reporting system provides adequate reports, but the reports are not analyzed and acted upon:

Question

Quizplus · Accepted Answer

Choice "B" is correct. The fact that budgetary reports are being generated indicates that the control has been implemented. The control, however, does not provide any assurance regarding achievement of the entity's objectives, since the report is not being analyzed or acted upon. Accordingly, the control is not operating effectively. Choices "A", "C", and "D" are incorrect. The control has been implemented but is not operating effectively per the explanation above.

If a Budgetary Reporting System Provides Adequate Reports, but the Reports