Various parties are taking an increased interest in the quality of an entity's internal controls. In the US, the Sarbanes-Oxley Act requires public reporting on the quality of internal controls over financial reporting. But in Australia, companies are not yet required to report on it. In your assignment, you are required to write a report and discuss the following:

1. Briefly explain the difference between internal control and internal control over financial reporting. What are the major distinctions?

2. Who are the primary beneficiaries of public reporting on assurance on internal control and what are the primary benefits of such reporting? Do you think Australia should introduce a similar requirement? Justify your answer.

3. If Australia did require public reporting on internal control and provision of assurance on that report, how would a negative assurance report on internal controls over financial reporting likely affect share prices? Is the nature of the deficiency in internal control likely to make a difference in the potential effect on share market prices? Explain by identifying, the types of deficiencies that would most likely have a negative effect on share market prices?