Are management reports on financial statement responsibility useful?

Article Abstract:

The Securities and Exchange Commission (SEC) and the Committee of Sponsoring Organizations (COSO) of the Treadway Commission have issued new proposals regarding management reports. A COSO exposure draft (ED) recommends that management reports contain specific information on the effectiveness of a company's internal control system, while the SEC proposes that the issuance of management reports be made mandatory. The Treadway/SEC recommendations are aimed at protecting the investing public by specifying management's responsibility for the reliability of financial statements. An analysis of management reports issued voluntarily between 1985-90 indicates that the recommendations may not necessarily result in better information for users of financial statements.

Business associations, Regulation misc. commercial sectors, Laws, regulations and rules, United States. Securities and Exchange Commission, Financial statements

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What is internal control? Who owns it?

Article Abstract:

The National Commission on Fraudulent Financial Reporting, the Treadway Commission, reported the lack of a universal concept of internal control. The Treadway Commission found that there are varying interpretations and philosophies concerning internal control. There are a number of groups that have a stake in internal control. The internal auditor is considered to be the internal control expert for corporations. In addition, management shares a basic responsibility for internal control. Lastly, independent auditors review an entity's internal controls as part of an audit. The lack of a universal definition of internal control has important ramifications in that it dilutes the quality of financial reports and should be remedied.

Methods, Analysis, Reports, Internal auditing

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NAA publishes new MAP statement

Article Abstract:

This formal statement the National Association of Accountants gives a guideline for understanding the allocation of administrative costs and service. An annotate bibliography is included.

National Association of Accountants

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