§7262 Management assessment of internal controls

Summary

The SEC requires companies that file annual reports to include a short report about their internal controls for financial reporting. Company management must say they are responsible for setting up and keeping those controls and must give an assessment at the end of the fiscal year saying whether the controls are effective. The company’s outside auditor (not required for emerging growth companies) must check and report on management’s assessment following attestation standards and include that check in the audit report. That auditor check does not apply to companies that are neither “large accelerated filers” nor “accelerated filers” under SEC rules.