TAILIEUCHUNG - Lecture Auditing and assurance services (Second international edition) - Chapter 7: Auditing internal control over financial reporting

In this chapter, the learning objectives are: Understand management's responsibilities for reporting on internal control under section 404 of the sarbanes-oxley act, understand the auditor's responsibilities for reporting on internal control under section 404 of the sarbanes-oxley act, know the definition of internal control over financial reporting (ICFR),. | Auditing Internal Control over Financial Reporting Chapter Seven Management Responsibilities under Section 404 Section 404 of the Sarbanes-Oxley Act requires managements of publicly traded companies to issue an internal control report that explicitly accepts responsibility for establishing and maintaining ‘adequate’ internal control over financial reporting (ICFR). Management Responsibilities under Section 404 Management must comply with the following in order for its public accounting firm to complete an audit of ICFR. Accepts responsibility for the effectiveness of the entity’s ICFR. Evaluate the effectiveness of the entity’s ICFR using suitable control criteria. Support its evaluation with sufficient evidence, including documentation. Present a written assessment of the effectiveness of the entity’s ICFR as of the end of the entity’s most recent fiscal year. Auditor Responsibilities under Section 404 and AS5 The entity’s independent auditor must audit and report on the effectiveness of ICFR. The auditor is required to conduct an integrated audit of the entity’s ICFR and its financial statements. ICFR Defined ICFR is defined as a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. Controls include procedures that: Pertain to the maintenance of records that fairly reflect the transactions and dispositions of the assets of the company. Provide reasonable assurance that transactions are recorded in accordance with GAAP. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets. Internal Control Deficiencies Defined A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a

• Kế toán - Kiểm toán
• Financial reporting
• Assurance services
• Financial statement auditing
• Auditing services
• Auditing business processes
• Auditing internal control
• Framework of financial reporting
• Lecture Framework of financial reporting
• Regulatory system
• Financial statements
• Reporting financial performance
• Reporting financial performance
• Financial accounting
• International financial reporting standards
• Financial reporting standards
• Merchandising operations
• Internal control
• Stockholders’ equity
• Financial statement analysis
• Financial information
• Economics of accounting information
• Computer associates international
• Financial reporting for leases
• Lease contracts
• Lessee accounting
• International financial reporting
• Conceptual framework
• Financial position
• Interpreting financial statements
• Consolidated financial statements
• Financial statements comprises
• Corporate financial reporting
• Group financial statements
• Sustainability reporting
• Reporting through XBRL
• Government accounting in india
• Regulatory framework
• Contingent liabilities