Management is responsible for preparing financial statements, in accordance with U.S. GAAP. In taking responsibility for the preparation of financial statements, management both implicitly and explicitly asserts that the financial statements:
- Contain information on transactions that actually occurred
- That the amounts fairly represent the realizable values of assets or amounts of obligations owed, and
- That the transactions were reported in the proper accounting period.
Management is also responsible for establishing and maintaining an adequate system of internal controls over financial reporting, including the safeguarding of assets against unauthorized use, disposition or acquisition.
Internal control systems, or frameworks, are guided by concepts developed to provide a level of assurance that the controls established will prevent or detect errors or fraud that would cause the financial statements to be misstated and therefore not providing reliable, accurate and complete information.
This webinar will discuss the requirements for a financial institution when management is required to assess the effectiveness of the bank’s system of internal controls over financial reporting.