United States Government Accountability Office GAO November 2011_part2 doc

Page 9 GAO-12-219 SEC’s Financial Statements for Fiscal Years 2011 and 2010 • evaluated the overall presentation of the financial statements; • obtained an understanding of SEC’s and IPF’s operations, including SEC’s internal contro l over financial reporting for both the agency as a whole and IPF; • considered SEC’s process for evaluating and reporting on internal control over financial reporting based on criteria established under FMFIA; • assessed the risk that a material misstatement ex ists in the financial statements and the risk that a material weakness exists in internal control over financial reporting; • evaluated the design and operating effectiveness of internal control over financial reporting based on the a ssessed risk; • tested relevant internal control ov er financial reporting; • evaluated SEC’s assessment of its internal control over financial reporting; • tested comp liance with selected provisions of the following laws and regulations: the Securities Exchange Act of 19 34, as amended; the Securities Act of 1933, as amended; the Antideficiency Act; laws governing the pay and allowance system for SEC employees; the Debt Collection Improvement Act; the Prompt Payment Act; the Federal Employees’ Retirement System Act of 1986; Full-Year Continuing Appropriations Act, 2011, which incorporates, by reference, certain provisions of the Financial Services and General Government Appropriations Act, 2010; and the Dodd-Frank Wall Street Reform and Consumer Protection Act; and • performed such other procedures as we considered necessary in the circumstances. An entity’ s internal control over financial reporting is a process effected by those charged with g overnance, management, and other personnel, the objectives of which are to provide reasonable assurance that (1) transactions are properly recorded, processed, and summarized to permit the preparation of financial statements in accordance with U.S. generally accepted accounting principles, and assets are safeguarded against loss This is trial version www.adultpdf.com . Page 9 GAO- 12-219 SEC’s Financial Statements for Fiscal Years 2011 and 2010 • evaluated the overall presentation of the financial. 1986; Full-Year Continuing Appropriations Act, 2011, which incorporates, by reference, certain provisions of the Financial Services and General Government Appropriations Act, 2010; and the Dodd-Frank