Management needs to document (a) the controls that exist to accomplish the objectives of good internal control over financial reporting, and (b) management's evaluation of the effectiveness of those controls.

Required
a. To what extent must the nature of internal controls utilized by a public company be documented and tested for effectiveness of operations?
b. What roles should each of the following parties play in the documentation and testing of internal controls over financial reporting?
• Senior management
• Internal auditing
• Operating managers
• Staff or operating personnel
c. Do management reports on internal control over financial reporting require independent testing of the controls by the organization, or just by the external auditor? Explain.