TAILIEUCHUNG - Lecture Auditing and assurance services (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. | Chapter Seven Auditing Internal Control over Financial Reporting Management Responsibilities under Section 404 Section 404 of the Sarbanes-Oxley Act requires managements of publicly traded companies in the United States to issue an internal control report that explicitly accepts responsibility for establishing and maintaining ‘adequate’ internal control over financial reporting. Management Responsibilities under Section 404 Management must comply with the following in order for its public accounting firm to complete an audit of internal control over financial reporting. Accepts responsibility for the effectiveness of the entity’s internal control over financial reporting. Evaluate the effectiveness of the entity’s internal control over financial reporting using suitable control criteria. Support its evaluation with sufficient evidence, including documentation. Present a written assessment of the effectiveness of the entity’s internal control over financial reporting as of the end of the entity’s most recent fiscal year. Auditor Responsibilities under Section 404 The entity’s independent auditor must audit and report on management’s assertion about the effectiveness of internal control. The auditor is required to conduct an ‘integrated audit’ of the entity’s internal control over financial reporting and its financial statements. Internal Control over Financial Reporting Defined Internal control over financial reporting 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 generally accepted accounting principles (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 .

• Kế toán - Kiểm toán
• Financial statement auditing
• Audit planning
• Internal control
• Auditing business processes
• Auditing internal control
• Financial reporting
• Auditing services
• Assurance services
• Financial statement auditing environment
• Auditing demands logic
• Auditing environment
• Income statement accounts
• Financial statement audit
• Auditing the purchasing process
• Auditing the financing
• Internal auditing services