Proposed Changes to Internal Control Guidelines
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued an exposure draft in December 2012 which contained proposed updates to the internal control framework they previously issued in 1992. The COSO framework provides guidance to organizations on how to design and maintain an effective system of internal control. The update seeks to address the significant changes in business, operations, and technological environments that have occurred since the original COSO release.
The draft does not change the 5 core objectives of the original internal control framework. It specifies several guiding principles within those core objectives providing clarity for users in the design and development of systems of internal control. The updated principles address areas such as: governance oversight, use of and reliance on evolving technologies, fraud prevention and detection, changes in business models, and globalization of markets and operations.
A public comment period ended March 31, 2012, and the final updated framework is expected to be released in early 2013. For more detailed information, the draft and public comments can be found here.
For additional information and guidance on applying the new revenue recognition standards, please contact Carl Chatto or your BNN advisor at 1.800.244.7444.
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