Reasons that internal controls are crucial to companies that convert from U.S. GAAP to IFRS include all of the following except:
A) Possible misstatement of financial information.
B) Possible fraud.
C) Controls are significantly different across the globe.
D) Ineffective communication of the change to investors, creditors, and others.
E) Management's inability to certify the effectiveness of the controls.

Question

Quizplus · Accepted Answer

Controls may differ across the globe, but this is a reason why internal controls are crucial, not an exception. The other options are valid reasons for the importance of internal controls during a conversion to IFRS.

Reasons That Internal Controls Are Crucial to Companies That Convert