SEC exempts certain companies from ICFR attestation requirement

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SEC exempts certain companies from ICFR attestation requirement

Smaller reporting companies with less than $100 million in revenue will no longer be required to obtain a separate attestation of their internal control over financial reporting (ICFR) from an outside auditor under amendments adopted Thursday by the SEC.

Under the amendments, these companies will continue to be required to establish and maintain effective ICFR. These companies’ principal executive and financial officers will be required to continue to certify that they are responsible for establishing and maintaining ICFR and have evaluated and reported on the effectiveness of the company’s disclosure controls and procedures.

These companies also will continue to be subject to a financial statement audit by an independent auditor, who will be required to consider ICFR in the performance of that audit. But the separate attestation of these companies’ ICFR by an outside auditor will no longer be required.

The amendments will:

The amendments will take effect 30 days after publication in the Federal Register and apply to an annual report filing due on or after the effective date.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

Research & References of SEC exempts certain companies from ICFR attestation requirement|A&C Accounting And Tax Services
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SEC exempts certain companies from ICFR attestation requirement

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