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FINANCIAL REPORTING

CAQ educational guide describes internal control process

 

By Ken Tysiac
March 22, 2013

A new guide released Thursday by the Center for Audit Quality (CAQ) is designed to educate investors and the general public on a process that reinforces reliable financial reporting at U.S. public companies.

The CAQ’s Guide to Internal Control Over Financial Reporting describes how companies enhance the reliability of their financial statements by reducing the risk of material errors or misstatements.

“An effective system of internal control over financial reporting is one of the bedrocks of the financial reporting system underpinning U.S. securities markets,” CAQ Executive Director Cindy Fornelli said in a news release.

The CAQ is affiliated with the AICPA.

The guide describes financial reporting controls that companies use to provide reasonable assurance that their financial statements are reliable and prepared in accordance with GAAP. Company management’s role in establishing an effective internal control process and the audit committee’s oversight of internal control also are described in the publication.

Ken Tysiac (ktysiac@aicpa.org) is a JofA senior editor.

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