risk
Ineffective ICFR / undisclosed material weakness
Because internal control over financial reporting is not maintained effectively - material weaknesses undetected or undisclosed and certifications signed despite known deficiencies - financial statements may be materially misstated and filings delayed or restated, resulting in SEC enforcement, delisting, securities-fraud liability, and loss of investor confidence.
Record JSON · Open in map · Data retrieval guide
Catalog revision: f368a6cce277037e4b1e1ff46004e3acd295f96c9ac63a411a0e45775a7f468e. A connection does not establish full coverage.
Attributes
- category
- financial_reporting
- domain
- Financial Reporting Controls (SOX)
- Compliance, Audit & Assurance
- Governance, Policy & Oversight
- taxonomy
- enterprise-risk
- coso-erm-risk
- sox-rmm-assertion
- inherent_rating
- critical
Details
- risk_id
- fin-icfr-material-weakness
- category
- financial_reporting
- likelihood
- medium
- impact
- critical
- inherent_rating
- critical
- treatment
- mitigate
- taxonomies
- enterprise-risk
- coso-erm-risk
- sox-rmm-assertion
Source
No record-specific source URL is provided.
Connections
- UC-GOV-20 — Govern data as an asset with accountable oversight bodies mitigates Ineffective ICFR / undisclosed material weakness
- strength
- related
- rationale
- Overseeing data quality and integrity supports the reliable data underlying financial reporting.
- UC-ACCESS-15 — Design control activities over technology access mitigates Ineffective ICFR / undisclosed material weakness
- strength
- related
- rationale
- General controls over technology access underpin the ITGC layer supporting reliable financial reporting.
- UC-GOV-16 — Select and tailor a risk-based control baseline mitigates Ineffective ICFR / undisclosed material weakness
- strength
- related
- rationale
- Baseline general controls over technology support reliable financial reporting.
- UC-AUDIT-21 — Assess control effectiveness through testing and monitoring mitigates Ineffective ICFR / undisclosed material weakness
- strength
- primary
- rationale
- Monitoring that assesses control design/operating effectiveness and evaluates and communicates deficiencies (SOX ELC-MON, COSO P16) detects undetected ICFR weaknesses.
- UC-FIN-01 — Deploy financial control activities through policies mitigates Ineffective ICFR / undisclosed material weakness
- strength
- primary
- rationale
- Deploying control activities via approved, owned, periodically-reviewed policies is a core structural defense of ICFR effectiveness.
- UC-FIN-09 — Ensure quality of information used in reporting mitigates Ineffective ICFR / undisclosed material weakness
- strength
- related
- rationale
- Reliable IPE underpins control operation; weak IPE is a common material-weakness root cause.
- UC-AUDIT-16 — Communicate final engagement results to stakeholders mitigates Ineffective ICFR / undisclosed material weakness
- strength
- related
- rationale
- Reporting control-deficiency findings surfaces potential ICFR weaknesses so they can be disclosed and remediated.
- UC-GOV-08 — Segregate conflicting duties and areas of responsibility mitigates Ineffective ICFR / undisclosed material weakness
- strength
- related
- rationale
- SoD over transaction initiation and approval reduces undetected errors and misstatement feeding ICFR weakness.
- UC-GOV-05 — Ensure board-level oversight of risk and internal control mitigates Ineffective ICFR / undisclosed material weakness
- strength
- related
- rationale
- Board/audit-committee oversight of internal control provides challenge that helps surface ICFR material weaknesses.