COSO之后的管理报告外文翻译.docx

COSO之后的管理报告外文翻译.docx

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COSO之后的管理报告外文翻译

外文文献翻译

原文：

MANAGEMENTREPORTSAFTERCOSO

Authors:

K．RagahunandanandD．VRama

Whenitcomestomanagementreportsoninternalcontrols,mostFortune100companiesdotheirownthing.

Theissueofmanagementreportsoninternalcontrolshasbeenaddressedbymanyauthorities,includingtheNationalCommissionFraudulentFinancialReporting（TreadwayCommission）andtheSecuritiesandExchangeCommission.internalControl-IntegratedFramework,issuedin1992bytheCommitteeofSponsoringOrganizations（COSO）oftheTreadwayCommission,coveredtheissueofmanagementreportingoninternalcontrolinsignificantdetailandprovidedguidanceastowhatshouldbeaddressedinsuchreports.

TheFederalDepositInsuranceCorporationImprovementActof1991includedaprovisionmandatinginternalcontrolreportingbymanagementforinsureddepositoryinstitutionswithassetsofmorethan$500million.Ithasbeensuggestedthatifthislegislationisperceivedtobeeffective,itcouldhavefutureimplicationsforallpubliccompanies.Earlierversionsofproposedlegislationrelatingtofinancialfrauddetectionanddisclosurehaveincludedprovisionsthatwouldhaverequiredmanagementtoincludeareportoninternalcontrolsinauditedfinancialstatements.

Intheabsenceofmandatoryrequirementsformanagementreportsoninternalcontrols,somecompaniesvoluntarilyincludesuchareport..Ananalysisofthe1993annualreportsofFortune100companiesdisclosedthatonly80ofthe100companiesincludedamanagementreportoninternalcontrolintheirannualreport;andeventhoughtheCOSOreportprovidedspecificguidelinesaboutissuestobeaddressedinsuchreportsandprovidedthreemodelsforsuchreports,thereportsarequitediverse.

InternalControlEffectiveness

Allofthe80reportsstatedthattheymaintainedaninternalcontrolsystemanddescribedtheirinternalcontrolsysteminvaryinglevelsofdetail.However,statingthataninternalcontrolsystemexistsisverydifferentfromstatingthatsuchasystemhasbeenassessedtobeeffective.

TheCOSOreportsnotedthat"astatementonmanagementresponsibilitiesorthedesignoftheinternalcontrolsystemismuchlesssubstantivethanreportingoneffectiveness,andmightmisleadreaderswhodonotrecognizethesubtledistinctioninwording."AnearlierexposuredraftoftheCOSOreportshadstated"ifmanagementreportspubliclyonitscompany'sinternalcontrol,itshouldn'thedgebyspeakingonlytowhatthesystemisdesignedtodo.Itshouldstatewhetherornotthesystemiseffective."

Internalcontrolreportscanpertaintoapointintimeortoaperiodoftime.Thisisimportantbecauseifthereportcoversaperiodoftime,thentheevaluationprocessismuchmoreextensive.Further,ifsignificantdeficienciesexisted,managementmighthavetodisclosethatfacteveniftheweaknesseswerecorrectedpriortotheyearend.COSOnotedthatpoint-in-timereportingispreferablesinceit"providesaconstructivefocus...ratherthanondisclosingdeficienciesthatwereidentifiedduringtheyearandpromptlycorrected."

Onlyfourcompaniesspecificallystatedthattheinternalcontrolsystemhadbeenassessedbasedoncriteriagivenin"InternalControl--IntegratedFramework"andthatthesystemofinternalcontroloverfinancialreportingmetthecriteriaasofthefiscalyearend.Forexample,BaxterInternational'sreportsnotedthat"Magementassessedthecompany'ssystemofinternalcontrolsasofDecember31,1993,inrelationtocriteriaforeffectiveinternalcontroloverfinancialreportingdescribedininternalControl--IntegratedFramework,issuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission.Basedonthisassessment,itismanagement'sopinionthat,asofDecember31,1993,thecompanymaintainedaneffectivesystemofinternalcontrolsoverthepreparationofitspublishedinterimandannualfinancialstatements."

Anadditionaltworeportsspecificallystatedthattheirinternalcontrolswereeffectiveasofaspecificdate（thefiscalyearend）butdidnotmentionthecriteriaforsuchassessment.Manyotherreportssimplynotedthat"thesystemofinternalcontrolisadequatetoaccomplishtheobjectives"withoutstatingthetimeorcriteriaforsuchanevaluation.Onlyonecompanyusedaperiod-of-timeevaluation.Merck'smanagementreportstatedthat"inmanagement'sopinion,fortheyearendedDecember31,1993,theinternalcontrolsystemwasstrongandaccomplishedtheobjectivesdiscussedherein."

Statingthattheinternalcontrolsystemiseffectivemightbeperceivedbymanagementasincreasingitslegalliability.Thisisprobablythereasonsomecompanieswerereluctanttomakesuchstatementsabouttheeffectivenessofinternalcontrols.However,withtheappropriatecaveatsthemanagementreportneednotincreaselegalliabil