Place the number corresponding to each of the following characteristics in the appropriate section of the diagram.

Question:

Place the number corresponding to each of the following characteristics in the appropriate section of the diagram. If a characteristic applies to both internal and external review, place that number in the overlapping section.

1. Conducted by employees of the company itself

2. Conducted by professional accountants hired by the company

3. Designed to improve internal control over company assets

4. Determines whether the company€™s financial statements fairly represent its financial position and results of operations

5. Involves having an independent person verify that the company€™s control activities are being correctly followed

6. Required by law for public companies.

External Review Internal Review

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...