COSO Framework to be Released May 14, 2013
On May 14, 2013, the Committee of Sponsoring Organizations of the Treadway Commission, “COSO” will release an updated internal control framework, Internal Control – Integrated Framework: 2013. This will be the first major refresh since 1992 with the goal of updating the framework to consider changes in business and operating environments over the last 20 years. The new framework formalizes more explicitly the development of effective internal controls and assessment of control effectiveness to help users with compliance and determination. They also plan to release two supplemental documents, Illustrative Tools for Assessing Effectiveness of a System of Internal Control and Internal Control over External Financial Reporting: A Compendium of Approaches and Examples which are supplemental guides to assist users in applying the new framework.
Companies will have until December 14, 2014 to transition and comply with the new framework, and during the transition period, must state which framework they are using.
Is your tax department prepared to revisit its internal controls and transition to the new framework?