Under section 404 of the Act, every management has to furnish an \"Internal cont

Question

Under section 404 of the Act, every management has to furnish an "Internal control report. The report should contain about the responsibility of the management for establishing and maintaining a proper internal control system and the structure is so designed that the internal check is possible At the end of the year the management should ensure that there is a proper assessment of the working of the internal control system. What are the changes that the management is going to implement for better internal control structure also be furnished. Since the cost of implementing the Sarbanes Oxley Act is very high, smaller companies whose shares are not publicly traded are excluded from the orbit of the Act. They require that every management should: a. Assess the design and operational effectiveness of the internal control system. b. Evaluate the structure designed to detect frauds c. Perform a fraud risk assessment d. Evaluate controls over yearend financial reporting process.

Explanation / Answer

Working capital (abbreviated WC) is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital equals to current assets.

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