Speaker: Lynn Fountain
Duration: 90 Minutes
Product ID: 700022
When the topic of internal control is brought up, the conversation frequently centers on control activities or procedures, rather than the bigger picture of the whole internal control framework.
COSO 2013 along with the Public Company Accounting Oversight Board’s December 2012 report on the adequacy of the public accounting firm’s application of Internal Control procedures over Financial Analysis Reporting are two critical compliance documents that have a tremendous impact on the ongoing application of focus of not just financial reporting but also operational and compliance internal controls.
A December 2014 deadline was established by the COSO Commission for transition from the COSO 1992 internal control framework to the COSO 2013 internal control framework. For companies who are publicly traded and file SEC statements, the COSO framework is the guidance most cited for Sarbanes-Oxley attestation.
In May 2013, the COSO framework 2013 was updated from the previous 1992 version. The new framework effective date is December 15, 2014. As such, any company with a year-end falling after December 15, 2014 must have transitioned their internal control work to the aspects of the new framework. For companies not publicly traded, the COSO framework remains the leading control document utilized in evaluation of internal controls. Management, executives, the board and auditors should all have a strong understanding of COSO 2013 and its principle based approach.
In addition, COSO is strongly urging companies to employ the framework further than just their internal controls to financial reporting. The expectation is that the framework should be applied through operations and compliance areas.