Discuss the costs and benefits of requiring managers to report on the company's internal controls. Do you think it is necessary for the external auditor to attest to management's report? Why or why not? Determine whether each of the following are costs and benefits for management to report the company's internal controls: 1. For the firm: increased awareness of weak or ineffective controls, which, if corrected, could result in improved operations. 2. Some huge financial outlays. 3. Some disruption of operations to initially document and test the controls. 4. For investors: increased disclosure about a firm's controls. 5. It forces management to take responsibility for the internal controls. Do you think it is necessary for the external auditor to attest to management's report? Why or why not? Having a third party confirmation will Management's report on its internal controls is the firm's certification of the financial report. V the reliability of management's report on internal controls. Both reports state that the reports do not contain false statements or omit significant facts. There is no way to assess the internal control as an outsider