ICFR (Internal Control over Financial Reporting)
The starting point to evaluate the sufficiency of an ICFR program usually starts with a financial statement risk assessment. This risk assessment is aimed at investigating potential risk for material misstatement of financial reports. A company can assess the inherent risk for each class of transaction and conclude whether the risk of material misstatement is remote, lower, or higher. Then, based on this risk rating, the entity can vary the nature, timing, and extent of internal control testing to address the inherent risk for each class of transaction in an account balance or disclosure. An adequate set of controls must safeguard the quality of the financial report.
ICFR in CERRIX
ICFR risk and control frameworks will be perfectly supported with CERRIX GRC. We can help you to tie the ICFR framework to your financial statement components and report on potential risks and control weaknesses. If any undesired deviation from your standards reveals, CERRIX will inform you instantly. Moreover, CERRIX will limits errors in processes and bring efficiencies by automating your controls testing process. Whether you ICFR is based on SOX regulation or not, CERRIX will improve your ICFR process significantly.
ICFR (Internal Control over