On December 19, 2011, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued an exposure draft of the proposed Internal Control-Integrated Framework (the updated Framework) for public comments that ended on March 31, 2012. The revised version of the previously exposed updated Framework was released on September 18, 2012 along with the exposure draft of the Internal Control over External Financial Reporting: A Compendium of Approaches and Examples (the Compendium). This public comment period ends on December 4, 2012.
The updated Framework incorporates revisions arising from consideration of comments received from more than 200 organizations and professionals. In conjunction with the release, COSO also made available the proposed Illustrative Tools: Assessing Effectiveness of a System of Internal Control (the Illustrative Tools). The Illustrative Tools volume is intended to assist users in assessing the effectiveness of a system of internal control.
The Compendium is the primary focus of the September 18, 2012 release. It is a companion document to the updated Framework and illustrates how the principles set forth in the updated Framework can be applied.
This Dataline highlights the more noteworthy changes to the updated Framework, including requirements set out for effective internal control. It also summarizes the purpose of the companion documents to the updated Framework and highlights key considerations for companies, including transition to the updated Framework.