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Evaluation of Internal Controls Over Financial fibing (ICFR)
By Massood Oroomchi and Alec Moore
Founding Partners of the FinEx Group

January 22, 2007
Having certified the design of the ICFR as at December 31, 2006, most Canadian companies be directly moving to the next and final phase of the CEO/chief monetary officer Certification requirements - evaluating the operating effectiveness of the ICFR. Management should assess whether its controls are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in ossification with generally accepted accounting principles (GAAP). In parade to maximize the effectiveness and efficiency in executing the paygrade program, the following Top-Down, Risk-Based evaluation methodology should be deployed:
As illustrated in the following chart, for the evaluation of ICFR, the following steps should be interpreted:
* Perform an evaluation of the Governance, Entity direct and Disclosure Controls.



Merge the evaluation of IT Entity Level Controls with the evaluation of other Entity Level Controls.
* Apply a risk based approach to the evaluation of Transaction Level Controls and figure in the results of the evaluation of the Corporate Level controls as described above.
* Perform an evaluation of IT General Computer Controls.
* try IT Application Controls only if identified as key controls and factor in the results of the evaluation of IT General Computer Controls.
* Identify and report significant deficiencies to the Audit Committee and Material Weaknesses to the Shareholders if not remediated by the end of fiscal year.

In December 2006, the SEC issued a proposed interpretive guidance (SEC Guidelines) for management...If you want to get a full essay, order it on our website: Orderessay



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