The ICFR is important because:
A) it links the client's financial statements and the risks associated with financial reporting.
B) it links the information system and the risks associated with financial reporting.
C) it provides readers with an assessment of how effective the internal control system is.
D) All of the above.

Question

Quizplus · Accepted Answer

The ICFR (Internal Control over Financial Reporting) is important because it links the client's financial statements (A) with the risks associated with financial reporting, as well as linking the information system (B) with the risks associated with financial reporting. The ICFR provides readers with an assessment of how effective the internal control system is (C). Therefore, all of the options are correct.

The ICFR Is Important Because