The U.S. Securities and Exchange Commission (SEC) has published its interpretive guidance for management regarding their evaluation and assessment of internal control over financial reporting (ICFR).
The 77-page document describes how management can conduct a top-down, risk-based evaluation of internal control over financial reporting. The intent is to reduce uncertainty over what constitutes a reasonable approach to management’s evaluation, while allowing companies that have already developed assessment procedures and tools the flexibility to continue operations without dramatic changes.
FSA Times, The IIA (2007)
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