Question

According to SOX, an internal control report must

a. be included in the company's financial statements.
b. state that management is not responsible for the system of internal control.
c. contain an assessment of the effectiveness of the ERM function.
d. be included in the company's board reports.

Answer 1

According to the Sarbanes-Oxley Act, an internal control report must state management's responsibility for the internal control system and assess the effectiveness of the system.

Step-by-step explanation:

According to the Sarbanes-Oxley Act (SOX), an internal control report must include a statement that management is responsible for establishing and maintaining an adequate internal control system for the company. It should also state management's assessment of the effectiveness of the company's internal control structure and procedures for financial reporting.