Framework Used by Management
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SEC & PCAOB > PCAOB > Auditing Standard No. 2 > Framework used by Management
Source:
PCAOB Release 2004-001
March 9, 2004
Page A–11 – Standard
Framework Used by Management to Conduct Its Assessment
13. Management is required to base its assessment of the effectiveness of the
company's internal control over financial reporting on a suitable, recognized control
framework established by a body of experts that followed due-process procedures, including the broad distribution of the framework for public comment. In addition to being available to users of management's reports, a framework is suitable only when it:
• Is free from bias;
• Permits reasonably consistent qualitative and quantitative measurements
of a company's internal control over financial reporting;
• Is sufficiently complete so that those relevant factors that would alter a
conclusion about the effectiveness of a company's internal control over financial reporting are not omitted; and
• Is relevant to an evaluation of internal control over financial reporting.
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