With the year-end audit cycle rapidly approaching, regulators are sending signals that their expectations around internal control over financial reporting are not diminishing.
At a recent conference for Financial Executives International, staff members at the Securities and Exchange Commission said they continue to believe there’s more to be done to improve internal controls, and they’re happy to mediate any disputes companies may be having with their auditors. Good dialogue between preparers and auditors is critical to making continued progress, said Wes Bricker, recently appointed chief accountant at the SEC after the retirement of James Schnurr. “Don’t delay the conversation just because you think it’s hard,” said Bricker. “Have the conversation now. Have a reconciliation of views now before you get into the audit period...