CAQ educational guide describes internal control process

BY KEN TYSIAC

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.

SPONSORED REPORT

Questions to ask before committing to the cloud

Cloud computing has its pros and cons. In this report, we answer common questions CPAs may have as they consider transitioning partially or fully to the cloud.

QUIZ

News quiz: Experts offer guidance on accounting standards

Take this short quiz to see how much you know about the news, including a couple of SEC announcements, and facts cited in the guidance experts have offered on accounting standards.

CHECKLIST

Auditing risks in culture

Cultural flaws can seriously damage an organization. Here’s how internal auditors can reduce risks by embedding culture audits into existing audit programs.