Management's Responsibilities  
SEC & PCAOB > PCAOB > Auditing Standard No. 2 > Management Responsibilities in an Audit

Source:
PCAOB Release 2004-001
March 9, 2004
Page A14 Standard

Management's Responsibilities in an Audit of Internal Control Over Financial Reporting

20. For the auditor to satisfactorily complete an audit of internal control over financial reporting, management must do the following:

a. Accept responsibility for the effectiveness of the company's internal control over financial reporting;
b. Evaluate the effectiveness of the company's internal control over financial reporting using suitable control criteria;
c. Support its evaluation with sufficient evidence, including documentation; and
d. Present a written assessment of the effectiveness of the company's internal control over financial reporting as of the end of the company's most recent fiscal year.

21. If the auditor concludes that management has not fulfilled the responsibilities enumerated in the preceding paragraph, the auditor should communicate, in writing, to management and the audit committee that the audit of internal control over financial reporting cannot be satisfactorily completed and that he or she is required to disclaim an opinion. Paragraphs 40 through 46 provide information for the auditor about evaluating management's process for assessing internal control over financial reporting.

5/ Management is required to fulfill these responsibilities. See Items 308(a) and (c) of Regulation S-B and S-K, 17 C.F.R. 228.308 (a) and (c) and 229.308 (a) and (c), respectively.



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