Describe management’s responsibilities in implementing effective internal control over financial reporting in a public company.What responsibilities...

Describe management’s responsibilities in implementing effective internal control over financial reporting in a public company.What responsibilities did Koss Corporation’s management have to prevent or detect the embezzlement and accounting fraud?

Expert Solution

Over time, effective internal control over financial reporting has become a legal obligation. Since 1977, federal law has required public companies to establish and maintain a system of internal control that provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles (“GAAP”). The Sarbanes-Oxley Act of 2002 added a requirement, applicable to most public companies, that management annually assess the effectiveness of the company’s ICFR and report the results to the public. In addition, the Act requires most large public companies to engage their independent auditor to audit the effectiveness of the company’s ICFR

Koss corporations management resp. includes:

implementing appropriate internal controls
conuct annual audits of those internal controls
make the changes as per the report of audit over the effectiveness of the internal controls implemented

Hope this helps. Thanks

ekkarill92 answered 6 months ago

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Describe management’s responsibilities in implementing effective internal control over financial reporting in a public company.What responsibilities...

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