Framework Used by Management  
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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