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COSO has released for public comment and updated Internal Control - Integrated Framework
December 19, 2011
On December 19, 2011, COSO has released for public comment, and updated Internal Control - Integrated Framework, intended to help organizations improve performance with greater agility, confidence and clarity.
COSO originally engaged Pricewaterhouse Coopers (PwC) to develop a framework for internal control in response to a recommendation from the Treadway Commission. Issued in 1992, the COSO Internal Control-Integrated Framework has become the most widely used internal control framework in the world. Building on the success of the original framework, COSO has worked with PwC to update it for organizations: to adapt to increasing complexity and pace of change; to mitigate risks to the achievement of objectives; and to provide reliable information to support sound decision making.
A broad range of professionals from industry as well as representatives and observers from academia, government agencies and nonprofit organizations have provided a wealth of perspective on how the original Framework can be refreshed. The Framework retains the core definition of internal control and the five components of a system of internal control. One of the most significant enhancements is the codification of internal control concepts introduced in the original framework into 17 principles and supporting attributes that further support organizations as they apply judgment in managing risk and improving performance in an increasingly complex and rapidly changing environment.
The comment period for this exposure is open through March 31, 2012. It is important for management accountants to provide comments on guidance that has a significant impact on the profession. Comments can be responses to specific questions from COSO about the guidance or in the form of a letter. A copy of the feedback questions, an executive summary and copy of the guidance can be downloaded at www.ic.coso.org. Comments can be submitted to COSO at www.ic.coso.org.