Handbook: ICOFR reference guide

KPMG’s insights on assessing internal controls over financial reporting. KPMG’s guide to understanding and assessing ICOFR, including the 2013 COSO framework and deficiency evaluation.

Applicability

• Company that continues to report its assessment of the effectiveness of its ICOFR
• Company that is implementing ICOFR

Relevant date

• Effective immediately

Key impacts

Based on continued emphasis placed by the SEC and the PCAOB, KPMG has expanded its guidance on:

• The scope of management’s ICOFR assessment
• The consideration of the evidence necessary to evaluate the effective operation of controls
• The importance of Management Review Controls (MRCs) and considerations
• Controls over the completeness and accuracy of Information Produced by an Entity (IPE)
• The determination of whether a control deficiency exists and evaluating the severity

Report contents

• Documentation
• Control environment
• Risk assessment
• Understanding ‘what could go wrongs’ (WCGWs)
• Control activities
• Management review controls
• Understanding and responding to information technology (IT) risks
• Information and communication
• Monitoring
• Identifying and evaluating deficiencies

Related content

Handbook: Going concern