Key Developments Within Coso 2013-15 - 1508 Words

IMPLEMENTATION Key Developments within COSO 2013-15 †¢ COSO released an updated internal control- integrated framework in 2013 which will supersede the 1992 framework by Dec 14 2014 †¢ The SEC has stated the staff intends to monitor the transition for issuers using the 1992 Framework to evaluate rather any staff of commission action will be needed in the future. As the Framework was updated on Dec 14 2014 the staff that still abide by the 1992 Framework are likely to be questioned by the SEC regarding whether or not the 1992 Framework is a suitable framework †¢ It is recommended that the SEC registrants that are subject to reporting requirements related to internal controls (ICRF) use the 2013 framework for reporting periods ending after Dec†¦show more content†¦(pcaobus) The Importance of the COSO Framework †¢ The objective for COSO updating the framework included clarifying requirements for effective internal control, addressing relevant changes in business that introduce or elevate the risk of achieving entity objectives, †¢ The 2013 framework includes two new requirements –each of the five components of internal control and relevant principles is present and functioning-the five components of internal control operate together in an integrated manner †¢ The seventeen principles laid out in the 2013 framework are fundamental concepts that are associated with the five components of internal control. The 2013 framework requires that each relevant principle be present and functioning in order to demonstrate that all five components are present and functioning †¢ COSO does not believe that the additional criteria changed what is required for an effective system of internal control over financial reporting. Even so as managers and internal auditors access the design and effectiveness of the companies ICFR they may identify internal control deficits that require remediation during 2014. The COSO Framework The COSO Framework is made of five interrelated parts that are essential to successfully operating a business. These components are: I. Control