Internal Controls Over Financial Reporting (ICFR)
The processes and procedures a company maintains to ensure the reliability of its financial reporting.
ICFR encompasses the policies, procedures, and controls designed to provide reasonable assurance that financial statements are prepared in accordance with GAAP and free from material misstatement. Controls include entity-level controls (tone at the top, whistleblower policies, audit committee oversight), process-level controls (transaction processing, reconciliation, approval workflows), and IT general controls (access controls, change management, backup and recovery).
Under SOX Section 404, public company management must annually assess the effectiveness of ICFR using an accepted framework (most commonly COSO 2013). Identified deficiencies are classified as control deficiencies (minor), significant deficiencies (more than remote possibility of a more-than-inconsequential misstatement), or material weaknesses (reasonable possibility of a material misstatement). Document intelligence helps compliance teams organize ICFR documentation, map controls to financial statement line items, and retrieve evidence during audits.
More compliance Terms
General Data Protection Regulation (GDPR)
The European Union regulation governing how organizations collect, process, store, and protect personal data.
SOC 2
An auditing framework that evaluates an organization's controls for security, availability, processing integrity, confidentiality, and privacy.
HIPAA
The U.S. federal law that establishes standards for protecting sensitive patient health information.
Audit Trail
A chronological record of system activities that provides documentary evidence of the sequence of actions performed.
Data Privacy
The practice of handling personal information in accordance with legal requirements and individual expectations about data use.
PCI DSS
The Payment Card Industry Data Security Standard — a set of requirements for organizations that handle credit card information.
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