Materiality for multiple locations 2547
Glaucio last edited by
The Group where I work, in Brazil, is going to its third certification year, but we have a new question this year. The group acquired a new company and we, of course, did not have enough time to centralize the controls. I’d like to know if we must calculate a specific materiality to this new one or we can apply the group number.
AS5 cites in it paragraph B16 ‘In situations in which the SEC allows management to limit its assessment of internal control over financial reporting by excluding certain entities’. Do you know whether I can find a list of these situations?
kymike last edited by
I believe that this reference is to a response in the SEC SOX FAQ publication (zzz sec.gov/info/accountants/controlfaq.htm) question #3 regarding recent acquisitions and the ability to exclude the acquired entity from control assessment in the acquisition year.