Internal Control Over Financial Reporting Essay

Internal Control Over Financial Reporting - Essay Example The editing paper "Internal Control Over Financial Reporting" talks about the internal control over financial reporting and performing an integrated audit of Ford Motor Company and Toyota Motor Corporation. According to the Securities and Exchange Commission, disclosure procedures and controls includes those procedures and controls put in place to ensure that the information required to be availed in financial reports is processed, recorded, summarized and reported within the required timeframe as stipulated in the SEC rules. These procedures and control policy have an organized framework that enables an issuer to disclose the information required in the Exchange Act reports. The accumulated report is presented to the management of the issuer who include financial and principal executive officers within an appropriate time limit that enable implementation old decisions on the required disclosures. Despite their differences, internal controls and disclosure control overlap over financial reporting. Therefore, inherent limitations are those unintentional errors or intentional misstatements that may reflect in financial reports despite proper design and monitoring process. Comments on these limitations on financial report and statements aim at highlighting the impossibility of a 100% assurance control system, and that the information in the statements is material-error free. And the assurance that internal control does not contain any material weaknesses is essential to a management team.