Question

In order for an external auditor to complete an audit of a public company, the entity's management must comply with all of the following except?

1) accept responsibility for the effectiveness of the entity's internal control over financial reporting.
2) evaluate the effectiveness of the entity's internal control over financial reporting using suitable control criteria.
3) support its evaluation with sufficient evidence, including documentation.
4) present an oral assessment of the effectiveness of the entity's internal control over financial reporting as of the end of the entity's most recent fiscal year.

Answer 1

The entity's management does not need to present an oral assessment of the effectiveness of the entity's internal control over financial reporting.

Step-by-step explanation:

The management of a public company must comply with all of the following in order for an external auditor to complete an audit, except for presenting an oral assessment of the effectiveness of the entity's internal control over financial reporting. The management must:

1. Accept responsibility for the effectiveness of the entity's internal control over financial reporting.
2. Evaluate the effectiveness of the entity's internal control over financial reporting using suitable control criteria.
3. Support its evaluation with sufficient evidence, including documentation.

Therefore, presenting an oral assessment is not a requirement for the entity's management to comply with.