Question

What is included in an internal audit disclosures. Where can they be found? Please Provide examples.

Answer 1

Internal audit disclosures typically include disclosures about material weakness of the company and any non compliance with the Sarbanes Oxley Act. As per the SEC, companies must have a disclosure committee to consider the materiality of the internal control reviews. Any issue that is material and worthy of disclosure to investors forms a part of the annual report. Usually , internal audit disclosures are not found in the annual audit report and investors are able to obtain the company's internal audit report through voluntary corporate disclosures. Examples of internal audit discloures include management discussion and analysis on internal audit matters, audit committee reports etc.