Volume 2 — Governance and ControlsGovernance and Controls © Copyright 2002, All rights reserved 41 middle office, and various support functions to obtain the appropriate information required to book transactions correctly. Financial reporting should work with corporate risk management, the middle office, and the back office to ensure that the information necessary to meet disclosure requirements, as defined by various regulatory agencies (e.g., SEC, FASB, FERC), is reported accurately and in a timely manner. Objectives • Ensure that appropriate entries are booked in accordance with current accounting regulations. • Provide necessary disclosures, as defined by various regulatory agencies. Best Practices and Controls • Proper accounting rules and regulations should be followed (FAS 133, EITF 98-10, EITF 02-03, etc.). • Adhere to disclosure requirements, as defined by various regulatory agencies. • Accounting entries should be booked on a timely basis. • Analysis and calculations should be documented and retained as an audit trial. • Appropriate audit procedures should be performed by both internal and external auditors at least once a year. • Changes in accounting methods, measurement techniques, and estimates should be properly disclosed. Key Reports • Periodic financial statements. • SEC reports (10K and 10Qs). • FERC Forms 1 and 2. 1.5 Reporting 1.5.1 Risk Reporting Process Overview Risk reports help management monitor, understand, and make decisions regarding market, credit, and operational risks. Reports are generated and distributed daily by the middle office. Objectives • Report all risks and positions associated with all trades, assets, and origination deals. • Ensure consistency of source data. • Ensure that corporate and business units use similar measures and methodologies.