This is the second article of a three-part series covering CEO and CFO certifications.
A system of internal control provides an organization with reasonable assurance that its objectives and obligations relating to external reporting and compliance with laws and regulations will be achieved. Conversely, the absence of appropriate controls could impact CEO and CFO certifications under NI 52-109, and attract unnecessary regulatory scrutiny—particularly if management cannot certify to the appropriateness of their controls or weak controls lead to a reporting failure. To avoid issues and ensure the overall effectiveness of the internal control system, proactive management and directors are essential.
Implementing and maintaining an appropriate, effective internal control system is critical in today’s regulatory environment—and taking the right steps to make that happen should be both a management and board priority.