In recent years, high profile accounting and management scandals in the commercial sector have given rise to legislative action to improve internal controls over financial reporting for companies participating in the financial markets.
The Sarbanes-Oxley Act of 2002 is the most recognizable of these initiatives, and it held implications for both public and private institutions to improve oversight for financial management and reporting. Additional laws and regulations have been passed since outlining requirements for establishing and maintaining internal controls for Federal agencies.
Many Federal agencies have undertaken a comprehensive review of their internal control environments. These reviews have uncovered a general need across the Federal Government to improve internal controls over financial reporting, including organizational, process, and technology related controls.
These improvements are necessary to enhance an agency’s fiduciary responsibility over their assets, as well as to bolster the validity of financial statement assertions. Perhaps more importantly however is that these improvements can and should also lead to improved process performance and productivity.
PwC’s approach goes beyond the compliance exercise to provide a comprehensive approach for business process improvement (BPI) for Federal agencies.