Free Site Registration

More Debits & Credits Posts

COSO Chair Previews New Internal Control Framework

By Michael Cohn
November 30, 2012

David Landsittel, the chairman of the Committee of Sponsoring Organizations of the Treadway Commission, or COSO, wants auditors to get ready for the expanded internal control framework that he anticipates will be approved next year.

Speaking at an auditing conference at Baruch College's Zicklin School of Business in New York on Thursday, co-sponsored by the NASBA Center for the Public Trust, he said the new framework has been updated to reflect the current business environment. COSO has also formalized the fundamental concepts in the 1992 framework underlying the five components as 17 principles.

“We felt it was time to update the framework,” he explained. “While it has remained relevant, the context and the technology have changed since 1992 and governance is better.”

David Landsittel

One of the elements that have been made more explicit is fraud deterrence. COSO has also expanded the financial reporting objective to address internal and external, as well as financial and non-financial, reporting objectives. There is also an increased focus on operations and compliance objectives based on user input.

Jennifer Burns, a partner in the Washington, D.C., office of Deloitte, said in a panel discussion with Landsittel that the new framework will be useful for auditors, but she would like the Public Company Accounting Oversight Board to provide guidance for making the transition from the 1992 framework to the 2013 framework. Landsittel said he believes the 1992 will continue to remain relevant. “The old framework isn’t broke,” he said. “We’ll continue to make it available, just as Microsoft does with Windows 7 even though Windows 8 is out. But the regulators may weigh in on the transition.”

The framework was developed with lots of pro bono help from PricewaterhouseCoopers, but the document isn’t PwC’s, Landsittel pointed out. He hopes to provide an electronic version of the new framework once it has been approved that will be searchable to make it much more usable, perhaps in PDF or EPUB format. J. Stephen McNally, finance director and controller at Campbell Soup, said that while the new document is much longer, it’s also much more usable than the 1992 framework and it’s easier to find the relevant information.


Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Debits & Credits, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Follow Accounting Today


Deloitte’s Efforts at Greater Diversity and Inclusion

April 23, 2014

Deloitte vice chairman and chief inclusion officer Deb DeHaas discusses the firm's efforts at recruiting a more diverse workforce.

Trends in the Accounting Profession

April 18, 2014

Jim Metzler, former AICPA vice president of small firm interests, and founder of Metzler Advisory Group, talks about how the CPA profession is changing.

Lessons in M&A: Client and Staff Retention

April 14, 2014

Transition Advisors president Joel Sinkin talks about what firms should do after a merger to retain their clients and staff members.



More Taxpayer Misconceptions

April 21, 2014

Apparently, there’s no end to the ridiculous things taxpayers believe.

Dumbest Employee Excuses for Being Late

March 31, 2014

Running a little late could have big repercussions, especially at a firm in the midst of busy season. From escaped zebras to must-see TV, employers told CareerBuilder some of the most memorable excuses they've heard from tardy employees.

Common Taxpayer Misconceptions

March 19, 2014

The NAEA’s collection of ridiculous things tax clients believe.

The 10 Fastest-Growing Firms in the U.S.

March 10, 2014

The firms with the highest 2013 revenue growth in our Top 100 Firms/Regional Leaders list.

Top 10 Tech Trends for 2014

March 3, 2014

As companies gain more affordable access to new technology and platforms, they also seek to make smarter investments.