Internal control over financial reporting (ICFR) is required for public companies and has been a part of issuer audits for over ten years. Often the conversation around ICFR is based on regulatory expectations, but an equally important conversation focuses on the intent of those regulations which is to increase trust in financial reporting by establishing reliable systems and controls.

As a result of SOX, most large public issuers are required to have an integrated audit performed, which includes an external auditor’s assessment of the effectiveness of the company’s ICFR (in addition to management’s annual assessment of internal control effectiveness). All issuer audits are subject to reviews performed by the PCAOB.