asked 220k views
2 votes
External auditors are required to audit the internal control assessment of the company as well as the financial statements.(True or False)

1 Answer

0 votes

Final answer:

External auditors are required to audit both the company's financial statements and its internal control assessment, with mandates like the SOX Act requiring such reviews especially for public companies.

Step-by-step explanation:

True. External auditors are indeed required to audit both the financial statements of a company and its internal control over financial reporting, especially for public companies. This is mandated by various laws and regulations, such as the Sarbanes-Oxley Act of 2002 (SOX) for publicly traded companies in the United States. Auditing the internal control assessment involves assessing the effectiveness of the company's internal controls related to financial reporting to ensure that the financial statements are free from material misstatement.

answered
User Probably Rgbkrk
by
8.0k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.