New CAQ Guide Explains How Public Companies Manage Financial Reporting Risks
Thursday, March 21, 2013
Publication for Investors Examines Internal Control over Financial Reporting at U.S. Public Companies
Washington, D.C. –The Center for Audit Quality (CAQ) today released a Guide to Internal Control Over Financial Reporting (ICFR), a new publication for investors and the general public that describes the process used by U.S. public companies to 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,” said CAQ Executive Director Cindy Fornelli. “Investors and others interested in the capital markets will value the Guide’s high-level perspective on the process that helps reduce financial reporting risks and produce accurate financial statements.”
The Guide to ICFR introduces the financial reporting controls that are designed to provide reasonable assurance that the company’s financial statements are reliable and prepared in accordance with generally accepted accounting principles. The publication describes company management’s responsibility for implementing an effective internal control process and the audit committee’s oversight of ICFR as part of its financial reporting responsibilities.
The publication is the latest in the CAQ’s series of introductory guides on auditing and capital market topics of interest to investors. All of the guides are available free of charge in the Publications section of the CAQ’s website.
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The Center for Audit Quality (CAQ) is an autonomous public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets. The CAQ fosters high quality performance by public company auditors, convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness and responsiveness to dynamic market conditions. Based in Washington, D.C., with an office in New York, NY, the CAQ is affiliated with the American Institute of Certified Public Accountants. For more information, visit www.thecaq.org.