COSO Releases Updated Internal Control-Integrated Framework
On May 14th, the Committee of Sponsoring Organizations (COSO), an initiative of five private sector organizations that develop guidance on risk management and internal control, released an updated Internal Control-Integrated Framework. The Integrated Framework is widely used by entities in evaluating their internal control systems to reduce the potential for fraud. The revised Integrated Framework reflects the changes to business practices and regulations since the original Framework was published in 1992.
The Framework is used by business and corporations, for-profit and nonprofit organizations and government entities. The grants community will be affected by the changes to the framework because auditors will examine how a grant recipient has established internal control procedures to mitigate risk.
COSO will continue to make available the original Framework to organizations through the transition period, which ends on December 15, 2014. After this date, COSO will consider the original Framework superseded by the updated version and auditors and organizations should be in compliance with the changes. For additional information, visit the COSO website at https://www.ic.coso.org/.