Are regulations changing management reports? A recent Financial Executives Research Foundation (FERF) survey reviews year-one disclosure practices for management's reports on internal controls, and looks at trends likely for year two.

Financial Executive, December, 2005 by de Mesa Graziano, Cheryl; Holtzman, Mark P.

One of the provisions of the Sarbanes-Oxley Act of 2002 led to new regulations over internal control disclosures. But the resulting U.S. Securities and Exchange Commission (SEC) rules provide companies with discretion when writing and disclosing their Management's Reports on Internal Controls. This report on internal controls was not required prior to Section 404. However, certain companies voluntarily chose to provide management's report on the financial statements.

What practices are most common and what interesting approaches did specific companies develop?

In order to find out about the emerging trends in management reports, Financial Executives Research Foundation (FERF) studied companies' reports, released during the spring 2005 reporting...

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