The measures used by an organization to provide reasonable assurance that the organization produces reliable financial reports,complies with applicable laws and regulations,and conducts its operations in an efficient and effective manner are collectively referred to as:
A)Generally accepted accounting principles.
B)Financial accounting standards.
C)Securities and exchange regulations.
D)The internal control structure.

Question

Quizplus · Accepted Answer

The measures used by an organization to provide reasonable assurance that the organization produces reliable financial reports, complies with applicable laws and regulations, and conducts its operations in an efficient and effective manner are collectively referred to as the internal control structure. This includes policies, procedures, and processes designed to achieve these objectives, such as segregation of duties, authorization and approval procedures, physical controls, systems and information technology controls, and personnel controls. The other options, such as generally accepted accounting principles and financial accounting standards, are sets of rules and standards that provide guidance on how financial reporting should be done. Securities and exchange regulations are laws that regulate the securities industry and protect investors. While these can be part of an organization's compliance requirements, they do not encompass the full range of measures included in the internal control structure.

The Measures Used by an Organization to Provide Reasonable Assurance