ICFR Audit Explained: A Simple Guide to Internal Control Over Financial Reporting

Every business relies on financial reports to make decisions. But how can you trust that these reports are accurate? This is where Internal Control over Financial Reporting (ICFR) comes in. ICFR is a system of policies and procedures that helps ensure financial statements are reliable and free from significant errors or fraud. An ICFR Audit is an evaluation of this system, ensuring that all key controls work as intended. Key Points: ICFR ensures that transactions are recorded correctly. An ICFR Audit checks that controls are in place and functioning. It is a vital part of regulatory compliance (for example, under SOX for public companies). What is an ICFR Audit? ICFR Audit refers to the systematic examination of the internal controls a company has implemented to support its financial reporting. This audit helps answer the question: What controls does the company have, and are they working properly? ICFR stands for Internal Control over Financial Reporting. An ICFR Audit reviews ...