On May 14, 2013, COSO published an updated Internal Control-Integrated Framework and related illustrative documents. COSO’s goals in updating the original framework and issuing the related illustrative documents are to (i) clarify the requirements of effective internal control, (ii) update the context for applying internal control to many changes in business and operating environments, (iii) broaden its application by expanding the operations and reporting objectives, (iv) provide illustrative tools to assist companies in implementing or evaluating their internal control, and (v) offer specific approaches and examples based on actual company experiences as to how the Framework applies to external financial reporting.
COSO has previously announced that it will continue to make available the original framework during the transition period extending to December 15, 2014, after which time COSO will consider the framework as having been superseded.
This Dataline highlights noteworthy updates to the Framework, summarizes the purpose of the illustrative documents, and highlights key considerations for companies.
See also our 10Minutes on why the COSO update deserves your attention for further insights regarding COSO’s update of the Framework.