[Comments on Treadway Commission's Report on Internal Controls]

GAO commented on the Treadway Commission's report on corporate internal controls. GAO noted that the report: (1) did not advocate public reporting on internal controls for financial reporting; (2) failed to encourage evaluation of other controls for laws and regulations; (3) excluded safeguarding of assets from financial reporting controls; (4) did not recognize the important role that an external auditor can play in evaluating internal controls; (5) did not provide specific guidance for an effective audit committee role; and (6) encouraged limited reporting of internal control deficiencies.