Nieashia Brown
Final Paper
September 9, 2020
The Management team is often responsible for establishing and maintaining an acceptable
system of internal control over financial reporting which should including safeguarding of assets
against unauthorized acquisition, use or disposition. This system is designed to provide
reasonable assurance to management and the board of directors regarding preparation of
reliable published financial statements and safeguarding of the Corporation’s assets. This system
is supported with written policies and procedures, contains self-monitoring mechanisms, and is
audited by the internal audit function. Appropriate actions are taken by management to correct
deficiencies as they are identified. All internal control systems have inherent limitations,
including the possibility of circumvention and overriding of controls, and, therefore, can provide
only reasonable assurance as to the reliability of financial statement preparation and such asset
safeguarding. This report would typically contain the following details:
• a statement of management’s responsibility for establishing and maintaining adequate
internal control over financial reporting for the company,
• management’s assessment of the effectiveness of the company’s internal control over
financial reporting as of the end of the company’s most recent fiscal year,
• a statement identifying the framework used by management to evaluate the
effectiveness of the company’s internal control over financial reporting.
• a statement that the registered public accounting firm that audited the company’s
financial statements included in the annual report has issued an attestation report on
management’s assessment of the company’s internal control over financial reporting.
• Limitations in internal controls and the possibility of overriding those controls.
An independent certified public accountant or accounting firm is one in which is in good
standing with the American Institute of Certified Public Accountants and in good standing in all
states in which the accountant or accounting firm is licensed to practice. The independent Public
Accounting firm would be hired to perform an independent audit, therefore must express an
opinion on the company’s internal control over financial reporting based on their audit. The
purpose of the Internal Control Over Financial Reporting is to assess the managements report on
internal control as well as independent assessment of internal controls by the auditor. As internal
controls are a process for assuring of an organization’s objectives in operational effectiveness
and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. A
