In 1992, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) published Internal Control-Integrated Framework, commonly known as the COSO Framework. Recently, the COSO board embarked on a project to update the COSO Framework to reflect changes in the business world over the 20 years since its original release.
PCPS has developed member resources to help you and your firm understand what has changed in the updated framework, what hasn’t changed and what this means for your clients and your firm. We’ve included a look at some service opportunities you can consider offering as well.
These tools and resources have been developed to assist you and your firm as your clients transition to the 2013 COSO Framework; however, they are not a substitute for reading and understanding the Framework itself. The complete 2013 COSO Framework is available in three options in the AICPA store:
Practitioner Insights into Providing Agreed Upon Procedures
Learning and Implementation Plan
Use the Implementation Checklist to organize your path to understanding and implementing the updated COSO Framework. This practical checklist walks you through the steps of learning what’s different in the new standards, training your staff, revising audit procedures, and communicating with clients. You’ll find links to toolkit components for each step of the way, along with links to additional AICPA resources that may help with the implementation process.
A Guide to the Changes and Impacts for Your Clients and Your Practice
The Guide provides an introduction to the key updates to the Framework, a look at what’s next for you and your clients, along with some ideas for services you can provide to your non-attest clients.
Staff Training PowerPoint
You can use this PowerPoint template to start training your staff. The toolkit provides an introduction to the 2013 Framework your firm can modify to fit your firm’s needs.
Client Communication Letter Template - Attest Engagement Clients
The 2013 COSO Framework affects your audit and agreed-upon procedures clients. You can use the template provided in the toolkit to introduce the general changes to your clients and educate them in advance of a more in-depth conversation regarding their engagement.
Client Communication Letter Template - Non Attest Clients
All clients can benefit from improved internal controls, regardless of whether they have an audit. Use this template to frame the issue with your non-attest clients and perhaps generate additional service opportunities.
Template for Client Newsletters or Firm Websites
In addition to the client letters, we’ve provided template language for newsletters or website articles. Use this resource to reach a broader audience in your educational outreach.
As part of the PCPS COSO Toolkit, we discuss providing agreed upon procedures to evaluate your clients' internal controls. Take a look at this article from F. Carter Heim, CPA, CFF, CGMA, as he discusses his firm's proactive approach to helping small, closely-held business clients increase the awareness of fraud risk.
Tips on Aligning Controls with COSO’s principles
A mapping exercise is one of the most important activities for any organization implementing the updated 2013 internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), experts say.
Technical Hotline AICPA members may call the Accounting and Auditing Technical Hotline at 888-777-7077, menu option number 5, followed by menu option number 3. You may also submit questions to the online
Accounting and Auditing Technical Hotline.