The DOJ and SEC, in the 2012 FCPA Guidance, stated, “Internal controls over financial reporting are the processes used by compa¬nies to provide reasonable assurances regarding the reliabil¬ity of financial reporting and the preparation of financial statements. They include various components, such as: a control environment that covers the tone set by the organi¬zation regarding integrity and ethics; risk assessments; con¬trol activities that cover policies and procedures designed to ensure that management directives are carried out See more +

The DOJ and SEC, in the 2012 FCPA Guidance, stated, “Internal controls over financial reporting are the processes used by compa¬nies to provide reasonable assurances regarding the reliabil¬ity of financial reporting and the preparation of financial statements. They include various components, such as: a control environment that covers the tone set by the organi¬zation regarding integrity and ethics; risk assessments; con¬trol activities that cover policies and procedures designed to ensure that management directives are carried out (e.g., approvals, authorizations, reconciliations, and segregation of duties); information and communication; and monitor¬ing.” Moreover, “the design of a company’s internal controls must take into account the operational realities and risks attendant to the company’s business, such as: the nature of its products or services; how the products or services get to market; the nature of its work force; the degree of regulation; the extent of its government interaction; and the degree to which it has operations in countries with a high risk of corruption.” See less -