As a cofounder of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), IMA® (Institute of Management Accountants) has contributed to the latest COSO exposure draft, titled, Internal Control over External Financial Reporting (ICEFR): Compendium of Approaches and Examples, and encourages small businesses to provide input. The exposure draft was announced September 18, 2012, by COSO.
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In conjunction with the release of the compendium, COSO is also making available the revised version of its updated Internal Control-Integrated Framework and proposed Illustrative Tools to assist users in assessing the effectiveness of internal controls.
According to Sandra B. Richtermeyer, PhD, CMA®, CPA, IMA's immediate former chair-emeritus and representative on the COSO Board, the framework, companion compendium, and Illustrative Tools are particularly useful for small- and medium-sized businesses.
"Many small businesses face risk due to lack of planning, operational challenges, and rapid growth. Strong internal control systems can be very helpful to these businesses as they align their strategy and operations while appropriately managing risk," said Dr. Richtermeyer.
COSO's overall goal in updating the framework is to ease use and application and to reflect changes in the increasingly complex business, operating, and regulatory environments since 1992.
According to John Exline, CMA, CPA, chair of IMA's Small Business Financial and Regulatory Affairs Committee, "The growth of small- and medium-sized businesses is a key component in the prosperity of the US economy, and COSO's draft compendium provides organizations with tools to increase the cost-effectiveness of their financial reporting."
To submit comments and find additional information on the draft compendium, please visit the COSO website.
Source: September 18, 2012, COSO Press Release