SEC Publishes Its Guidance for Management on Evaluating Internal Controls (FSA, IIA, 2007)

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)