Who in your organization writes the "Management's Report of Internal Controls over Financial Reporting", the Internal Audit Department, Financial Reporting Department, Accounting Department, etc.?

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Vice President - Internal Audit and Enterprise Risk Management in Healthcare and Biotech4 months ago

At our organization, Internal Audit drafts the report on behalf of management and then reviews with successive layers of management, who are ultimately the signees. We have discussed having the business take ownership but ultimately decided to retain the current structure as the IA team has the most direct knowledge and understanding of the internal controls concepts.

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VP of Finance4 months ago

Thank you, Martin for your quick response. That is what we do as well and thought of moving ownership to the business after reading the regulation again. It states that management is to outline its approach for evaluating the effectiveness of internal controls. I interpret that to mean management should really have ownership of the letter because it does not say based on Internal Audit's work....

Interested in feedback from others.

Director of Finance in Banking4 months ago

This report is prepared by the Internal Controls team within my Controllers department, in close collaboration with the Financial Reporting team in my department.

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Director of Finance4 months ago

I believe it is the Controls, Policy and Governance Function which sits in the Controllers Group.

SVP Corporate Audit in Energy and Utilities4 months ago

In the Corporate Audit department I have the Head of ICS who reports into me. His team are responsbile for writing the annual Internal Controls Effectiveness report.

VP of Finance in Insurance (except health)3 months ago

At our company, the report is prepared by management of the Internal Controls team and then reviewed with executive level management prior to their sign-off. Regular updates of the control environment are provided to management throughout the year for awareness so this becomes a fairly standard exercise as controls are wrapped up.