Assessing the Control Environment Using a Balanced Scorecard Approach

摘要: Section 404 of the Sarbanes-Oxley Act 2002 (SOX) requires that companies subject to Securities and Exchange 1934 include in their annual reports a report management on company's internal control over fmancial reporting. This must contain management's assessment statement effectiveness controls. Almost no guidance, however, has been provided how evaluate critical component controls: environment. The environment reflects top awareness commitment importance controls throughout organization, encompasses integrity, ethical values, operating philosophy. key successful is having sets tone integrity which influences consciousness employees. external auditor reviews makes an independent evaluation as part integrated audit financial statements. issues separate provide "reasonable assurance": auditor's provides reasonable assurance concerning whether company maintained, all material respects, effective statements fairly present position, results operations, changes cash flows. According PCAOB Auditing Standard (AS) 2, An Audit Intemal Control Over Financial Reporting Performed Conjunction with Statements (March 9, 2004), concept assur-