ICFR
Business & Finance abbreviation · Accounting
| Stands for | Internal control over financial reporting |
|---|---|
| Categories | Business & Finance |
ICFR stands for Internal control over financial reporting, an accounting abbreviation.
Processes and controls designed to provide reasonable assurance that a company's financial statements are reliable and prepared according to GAAP, such as approvals, reconciliations, access restrictions and reviews. US public companies must assess and report on ICFR annually under Section 404 of the Sarbanes-Oxley Act.
Example: Management concluded that ICFR was not effective because of a material weakness in revenue cutoff controls.
Usage notes
Most companies evaluate ICFR against the COSO internal control framework. A "material weakness" is a deficiency serious enough that a material misstatement might not be prevented or detected on time, and it must be disclosed. Auditors of larger public companies issue a separate opinion on ICFR.
Related abbreviations
More accounting abbreviations
- GRN – Goods received note
- H1 – First half
- H2 – Second half
- HTM – Held to maturity
- IAS – International Accounting Standards
- IASB – International Accounting Standards Board
- IFRS – International Financial Reporting Standards
- IPSAS – International Public Sector Accounting Standards
- JE – Journal entry
- LCM – Lower of cost or market
- LIFO – Last in, first out
- MD&A – Management's discussion and analysis