Wanted: A Cost-Effective Approach to Validating Performance of the Internal Control Structure

This issue of The Bulletin discusses the implementation of a cost-effective Section 404 compliance process. It addresses the importance of integrating self-assessment, entity-level monitoring and independent tests of controls into a coordinated approach to build the body of evidence supporting management’s assertion in the annual internal control report. The Bulletin asserts that companies need to think more broadly than testing when planning a cost-effective approach to validating internal controls.