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Internal Control

REQUIRED:
(1) Discuss management's four overall responsibilities with respect to internal control over financial reporting that arise from the SEC's implementation of the Sarbanes-Oxley Act of 2002.

(2) Discuss what is meant by a "walkthrough." Must walkthroughs be performed during audits of internal control over financial reporting? May the client perform a walkthrough and the auditors then review the client's work?

Solution Preview

REQUIRED:
(1).Discuss management's four overall responsibilities with respect to internal control over financial reporting that arise from the SEC's implementation of the Sarbanes-Oxley Act of 2002.
The first responsibility according to Section 302 of the Sarbanes Oxley Act is that management should certify that they are responsible for establishing and maintaining internal controls. In other words the management is responsible for setting up and maintaining internal controls. The second responsibility is to design such internal controls ...

Solution Summary

This solution gives you four management policies related to internal control.

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