Final answer:
The evaluation of internal controls over financial reporting involves accepting responsibility, evaluating effectiveness, documenting the evaluation process, and presenting a written assessment of the controls' robustness at the fiscal year's end.
Step-by-step explanation:
The responsibilities during the evaluation of internal controls over financial reporting (ICFR) include several critical steps. First, the management must accept responsibility for the effectiveness of internal controls. This means they should acknowledge that ensuring proper controls is fundamental to the reliability of financial reporting. Secondly, management must evaluate the effectiveness of these internal controls, typically by conducting tests and monitoring controls continuously throughout the fiscal year.
This evaluation should be adequate and in line with established frameworks, such as the COSO framework. Third, it is necessary to document the evaluation to provide proof of the process and its findings. Proper documentation aids in the assessment's credibility and may be required for audit purposes. Lastly, management should present a written assessment of the effectiveness of the internal controls over financial reporting at the end of the fiscal year, which will often be included in the annual financial reporting documents.