Ads
related to: internal controls over financial reporting
Search results
Results From The WOW.Com Content Network
Internal control, as defined by accounting and auditing, is a process for assuring of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. A broad concept, internal control involves everything that controls risks to an organization.
The COSO framework defines internal control as a process, carried out by the board of directors, the administration and other personnel of an entity, designed to provide "reasonable security" with respect to the achievement of objectives in operations, financial reporting, and compliance with applicable laws and regulations.
The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations.The act, Pub. L. 107–204 (text), 116 Stat. 745, enacted July 30, 2002, also known as the "Public Company Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability, Responsibility, and ...
For purposes of this addendum, the “Section 404 Report” means Management’s Report on Internal Control over Financial Reporting and the report of independent registered public accounting firm on internal control over financial reporting contained in or incorporated by reference in the Form 10-K/20-F.
It focuses on "assurance engagements when reporting on controls at a service organization that are likely to impact or be a part of the user organization's system of internal control over financial reporting". It specifies ISAE 3000 as being applicable. ISAE 3402 was adopted by the International Federation of Accountants (IFAC). [12]
These two concepts together (the account- or disclosure-related risks and control-related risks) are called "Internal Control over Financial Reporting Risk" or "ICFR" risk. A diagram was included in the guidance (shown in this section) to illustrate this concept; it is the only such diagram, which indicates the emphasis placed on it by the SEC.