THE SEC'S OPERATION BROKEN GATE INITIATIVE: INTERNAL AUDIT'S ROLE AS A GATEKEEPER

One key objective of internal control is to enable a company to produce reliable financial statements that investors and creditors can use to make informed investing and lending decisions. The Sarbanes-Oxley Act of 2002 Section 404 requires the management of public companies to assess the effectiven...

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Bibliographic Details
Published inInternal Auditing Vol. 30; no. 1; p. 20
Main Authors Boyle, Douglas M, Boyle, James F, Carpenter, Brian W
Format Trade Publication Article
LanguageEnglish
Published Boston Thomson Reuters (Tax & Accounting) Inc 01.01.2015
Subjects
Accounting firms
Audit committees
Auditing standards
Enforcement
Executives
Financial reporting
Fines & penalties
Fraud
Initiatives
Internal auditors
Internal controls
Performance evaluation
Professional standards
Professionals
Public companies
Quality control
Quality standards
SEC regulations
Whistleblowing
United States > US
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Summary:One key objective of internal control is to enable a company to produce reliable financial statements that investors and creditors can use to make informed investing and lending decisions. The Sarbanes-Oxley Act of 2002 Section 404 requires the management of public companies to assess the effectiveness of internal controls over financial reporting and (for larger companies) to also obtain an independent audit of internal controls. In 2013, the US Securities and Exchange Commission (SEC) announced an initiative called "Operation Broken Gate" to hold accountable those responsible for the fair financial reporting of public companies, including audit committees, auditors, and management. Internal auditors who maintain an objective perspective from management and take steps toward competency to effectively assist in the independent audit work will gain the trust of the external auditor to perform the audit work assignments.
ISSN:0897-0378