COSO Framework Assessment
December 17, 2015
Transitioning to the New COSO Framework for Internal Control Reporting
Since 1992, public companies have had to adhere to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Framework, which was updated in May 2013 to help mitigate the risks inherent in continuously changing technological, economic, and regulatory environments.
If implemented properly, the COSO Framework can provide a solid foundation for developing and maintaining sound internal control practices to minimize the risk of asset misappropriation.
The new Framework has been updated to reflect changes in business and operating objectives by expanding those objectives, which articulate principles to facilitate an effective control environment.
In addition, the SEC plans to monitor the transition for issuers using the 1992 framework to evaluate whether any SEC action is necessary for non-compliance. The challenge is that the longer issuers continue to use the 1992 framework, the more likely they are to receive scrutiny from the SEC.
SC&H Group has developed its online “COSO Framework Assessment,” to help companies understand the key principles of the new framework. It also serves as a benchmark in assessing the effectiveness of your organization’s system of internal controls relative to the new Framework.
Don’t miss out on the opportunity to determine if your internal controls capabilities are meeting the requirements of the new COSO Framework.