On March 21, 2013, the Center for Audit Quality (CAQ) released the Guide to Internal Control Over Financial Reporting (ICFR), a new publication for investors and the general public that describes the process used by US public companies to enhance the reliability of their financial statements by reducing the risk of material errors or misstatements.
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"An effective system of internal control over financial reporting is one of the bedrocks of the financial reporting system underpinning US 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 website.
Source: March 21, 2013, CAQ Press Release