Description for Assessment of ICFR

Key financial controls: Process Overview

The chart is a flow chart description of the process of Assessment of Internal Controls over Financial Reporting (ICFR) presenting the 4 core activities involved and their outputs described just below each activity. Activities and results/outputs are differentiated by colors and forms. The flow chart is set up in 5 key steps aligned with arrows from left to right. A box groups the 4 core activities for the assessment of ICFR. The flow chart begins with the first step on the left, which is Planning & scoping. Outputs from this activity are Strategic Plans for ICFR & ITGC and work plans. From this point, the process moves at right to Documentation of in-scope business processes. Outputs from this activity are Process Narratives or Flow Charts. Going right onto the third step, the process progresses to the activity of Tests of Design of Key Controls and involves, when required, Letters of Recommendations (LoR) regarding Design. Finally, Tests of Effectiveness of Key Controls is the last activity performed within the process of Assessment of ICFR. LoRs are also an output shown for this step. With arrows from top to bottom, the chart demonstrates that ongoing monitoring and risk management are performed at each step throughout the assessment process. Once the process of the Assessment of ICFR is fully completed, there is a resulting step described outside the box, at right. Reporting to the CS, CFO and Field Senior Management includes progress towards implementing PIC, results of the assessment of ICFR, and the state of audit readiness. Finally, an arrow showing an output from reporting, which is the Statement of Management Responsibility including ICFR labelling the signatures of the CS and CFO.