Securities and Exchange Commission December 27, 2006 – Federal Register Recent Federal Regulation Documents

Management's Report on Internal Control Over Financial Reporting
Document Number: E6-22099
Type: Proposed Rule
Date: 2006-12-27
Agency: Securities and Exchange Commission, Agencies and Commissions
We are proposing interpretive guidance for management regarding its evaluation of internal control over financial reporting. The interpretive guidance sets forth an approach by which management can conduct a top-down, risk-based evaluation of internal control over financial reporting. The proposed guidance is intended to assist companies of all sizes to complete their annual evaluation in an effective and efficient manner and it provides guidance on a number of areas commonly cited as concerns over the past two years. In addition, we are proposing an amendment to our rules requiring management's annual evaluation of internal control over financial reporting to make it clear that an evaluation that complies with the interpretive guidance is one way to satisfy those rules. Further, we are proposing an amendment to our rules to revise the requirements regarding the auditor's attestation report on the assessment of internal control over financial reporting.