In the fourth paragraph shown in exhibit 1615 the

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In the fourth paragraph shown in Exhibit 16–15, the opinion paragraph, note the reference to conformity with established criteria as the basis of the opinion, the refer- ence to materiality, and a direct reporting opinion on the effectiveness of internal con- trols. This paragraph also states that the opinions are given on the state of controls at a specifi c point in time (“as at”), that being the balance sheet date as is indicated in the sixth paragraph. EXHIBIT 16–14 REPORT OF MANAGEMENT REPORT OF MANAGEMENT Big Corporation and Subsidiary Companies Management’s Report on Internal Control over Financial Reporting Management is responsible for establishing and maintaining adequate internal control over financial reporting of the company. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in Canada. The company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in Canada, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that the company’s internal control over financial reporting was effective as of December 31, 200X. Management’s assessment of the effectiveness of the company’s internal control over financial reporting as of December 31, 200X, has been audited by Big Four LLP, an independent registered public accounting firm, as stated in their report which is included herein.
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  • Fall '12
  • Smith
  • Accounting, Accountant, Auditor's report, CICA Handbook

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