Describe the internal control principle of “Risk Assessment” as presented in COSO’s 2013 Framework, SOX 2002...

Describe the internal control principle of “Risk Assessment” as presented in COSO’s 2013 Framework, SOX 2002 Sections 404 & 302, and PCAOB’s AS 5.

Compare the internal control effectiveness of the Internal Control-Integrated Framework issued by COSO, the Sarbanes-Oxley Act of 2002, Section 404 “Internal Control over Financial Reporting Requirements”, and PCAOB’s AS 5 “an Audit of Internal Control over Financial Reporting that is integrating with an Audit of Financial Statements.”

Expert Solution

Financial reporting is a key design and operation of public company. often requires decision making and application of informed judgement. Controls cannot eliminate the variations in reporting in difficult situations.

Thereby provide reasonable assurance in reports are presented in accordance with GAAP and IFRS.

INTERNAL CONTROL OVER FINANCIAL REPORTING:

· Controls which provide reasonable assurance are free from material misstatements

· Controls elements of financial reporting

· Some processes will have direct or indirect impact on financial reporting

Internal financial control

· Controls which ensure effective and efficient functions of business

· External environment in order to survive and grow

· Safeguard assets and ensure compliance of policies

ekkarill92 answered 1 year ago

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