Question

To have a justifiable reason to issue a management report on internal control based on Section 404(a) from the Sarbanes-Oxley Act of 2002, management must do everything except for O a. establishing a system of internal controls containing no material weaknesses b. accepting main responsibility for the level of the effectiveness nature of their system of internal controls c examining the level of effectiveness of their system of internal control using control criteria suitable for evaluation d. supporting an evaluation that finds sufficient evidence

Answer 1

Answer:

The first option is correct

Explanation:

So as to have a justifiable reason to issue a management report on internal control, based on Section 404(a) from the Sarbanes-Oxley Act of 2002, the following responsibilities are required from the Management:

• Create and maintain adequate internal control over financial reporting for the company

•  Provide criteria for evaluators to assess the effectiveness of the company’s internal control over financial reporting

• Assess the effectiveness of the company’s internal control over financial reporting based on management’s evaluation of it, at year-end (i.e., a point-in-time assessment), including disclosure of any material weakness in the company’s internal control over financial reporting identified by management.

Therefore, to have a justifiable reason to issue a management report on internal control under Section 404(a) of the Sarbanes-Oxley Act of 2002, management must do everything, except "Establishing a system of internal controls containing no material weakness" as this was not stated under Section 404(a) of the Sarbanes-Oxley Act  of 2002.

Hence first option is correct.