Citation[]
Office of Management and Budget, Management's Responsibility for Internal Control (OMB Circular No. A-123) (June 1995; revised Dec. 21, 2004) (full-text).
Overview[]
This Circular defines management's responsibility for internal control in Federal agencies. A re-examination of the existing internal control requirements for Federal agencies was initiated in light of the new internal control requirements for publicly-traded companies contained in the Sarbanes-Oxley Act of 2002. Circular A-123 and the statute it implements, the Federal Managers' Financial Integrity Act of 1982, are at the center of the existing Federal requirements to improve internal control.
This circular reflects policy recommendations developed by a joint committee of representatives from the Chief Financial Officers Council (CFOC) and the President's Council on Integrity and Efficiency (PCIE). The policy changes in this circular are intended to strengthen the requirements for conducting management's assessment of internal control over financial reporting. The circular also emphasizes the need for agencies to integrate and coordinate internal control assessments with other internal control-related activities.