United States Government Accountability Office GAO November 2011 _part2 potx

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 inte rnal control over financial reporting for both the agency as a whole and IPF; • considered SEC’s process for evaluating and reporting on internal control over financia l reporting based on criteria established under FMFIA; • assessed the risk that a material misstatement e xists 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 assessed risk; • tested relevant internal control o ver financial reporting; • evaluated SEC’s assessment of its internal control over financial reporting; • tested compliance with selected provisions of the following laws and regulations: the Securities Excha nge Act of 1934, 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 circumst ances. An entity’s internal control over financial reporting is a process effected by those charge d with governance, 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