Inadequate Internal Controls over Financial Reporting (ICFR)

Revision as of 13:40, 28 September 2021 by Admin (talk | contribs) (Created page with "'''<u>Internal Control over Financial Reporting (ICFR)</u>''' Under federal law, publicly traded companies are responsible for devising and maintaining a system of internal a...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)

Internal Control over Financial Reporting (ICFR)

Under federal law, publicly traded companies are responsible for devising and maintaining a system of internal accounting controls sufficient to reasonably assure that:

  • transactions are executed in accordance with management authorization;
  • transactions are recorded as necessary to: 1) permit preparation of financial statements in conformity with GAAP and 2) maintain accountability for assets;
  • access to assets is permitted only in accordance with management authorization; and
  • recorded accountability for assets is compared with the existing assets at reasonable intervals, and appropriate action is taken regarding any differences.