Internal Control over Financial Reporting for Romanian Investment Firms under MiFID Directive Requirements

摘要

The COSO Report defined internal control as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives related to reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations. For the purpose of this paper, we refer mainly to assessing internal control over financial reporting process undertaken by investment firms as regulated entities that operate in the financial services' industry. We consider the effectiveness and efficiency of internal control over financial reporting a subject of a material importance for audit engagements performed within investment firms, given the need for reliable financial reports required by an adequate supervision. The paper intends to emphasize the importance of an adequate internal control structure that needs to be developed for investment companies and delivers arguments for reconciliation of national and European regulations to Sarbanes-Oxley Act of 2002 in the matter of assessing and reporting upon the quality of internal control over financial communicating process.