Framework Used by Management  
SEC & PCAOB > PCAOB > Auditing Standard No. 2 > Framework used by Management

Source:
PCAOB Release 2004-001
March 9, 2004
Page A11 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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