The SEC requires the MD&A report as well as the audit attestation on management’s assessment of internal controls. Why was the MD&A report required and how important is this report in facilitating disclosure of financial information? Why is the audit attestation report also an SEC requirement?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The SEC requires the MD&A report as well as the audit attestation on management’s assessment of internal controls. Why was the MD&A report required and how important is this report in facilitating disclosure of financial information? Why is the audit attestation report also an SEC requirement?

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MD&A report means management discussion and analysis report. The MD&A report forms a part of 10k (annual filings). It is a mandatory disclosure required as per SEC and Financial accounting standard board for public companies.

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