On Dec. 19, 2011 the Commitee of Sponsoring Organizations of the Treadway Commission, whose founding members are the AAA, AICPA, FEI, IIA and IMA, announced the release of an Exposure Draft updating COSO's 1992 Internal Control-Integrated Framework (IC-IF). Why should you care? Why should your students care?
For the past 20 years, COSO's IC-IF has been the 'gold standard' as a principles-based framework for internal control, particularly internal control over financial reporting, as evidenced by the reference to COSO in the SEC's and PCAOB's rulemaking requiring management reports, and an auditor's report, on the effectiveness of internal control over financial reporting.
Input from constituents of all five of COSO's sponsoring organizations, and other stakeholders, is highly sought to help make the resulting revision of COSO's general IC-IF, and the related Guidance on Internal Control over External Financial Reporting (ICEFR) - to be released as a separate Exposure Draft in the Spring of 2012, more practical, and more sensible from a theoretical/principles based focus as well.
COSO's framework is a tool which students in the field of financial reporting and beyond should be familiar with as they enter the business world.
The comment deadline on the Exposure Draft for the update to COSO's IC-IF is March 31, 2012. Read more about COSO's ED in the FEI FInancial Reporting Blog, and keep up with the latest developments by visiting COSO's website, www.coso.org."
By the way, FEI recently launched a second blog, authored by Tom Thompson of our research affiliate, the Financial Executives Research Foundation (FERF). Learn more about the FERF research blog.
Comment
"Where There's Smoke, There's Fraud: Sarbanes-Oxley has done little to curb corporate malfeasance. Therefore, CFOs should implement a range of fraud-prevention measures," by Laton McCartney, CFO.com, March 1, 2011 ---
http://www3.cfo.com/article/2011/3/regulation_where-theres-smoke-theres-fraud
"ACCOUNTANTS BEHAVING BADLY," by Anthony H. Catanach, Jr. and J. Edward Ketz, Grumpy Old Accountants, October 3, 2011 ---
http://blogs.smeal.psu.edu/grumpyoldaccountants/archives/332
Bob Jensen's fraud updates ---
http://www.trinity.edu/rjensen/FraudUpdates.htm
Bob Jensen's threads on professionalism in auditing ---
http://www.trinity.edu/rjensen/Fraud001c.htm
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Financial Instruments: Perhaps auditing courses could make use of some of the IAASB resources in
International Auditing Practice Note (IAPN) 1000, Special Considerations in Auditing Financial Instruments
|http://www.ifac.org/publications-resources/international-auditing-practice-note-iapn-1000-special-considerations-auditin
"IFAC Offers Alerts on Tough Audit Issues," by Tammy Whitehouse, Compliance Week, December 29, 2011 ---
http://www.complianceweek.com/ifac-offers-alerts-on-tough-audit-issues/article/221235/
Bob Jensen's threads on auditing professionalism are at
http://www.trinity.edu/rjensen/Fraud001c.htm
Bob Jensen's threads on Tools and Tricks of the Trade are at
http://www.trinity.edu/rjensen/000aaa/thetools.htm
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Question
What do international standards (IFRS) and COSO’s New Internal-Control Guidance sadly have in common?
Answer
Lack of real world examples and varied-circumstance implementation guides
"What’s Missing from COSO’s New Internal-Control Guidance: The proposal lacks real-world examples. CFOs will need to fill in the blanks," by Kristine Brands, CFO.com, March 20, 2012 --- Click Here
http://www3.cfo.com/article/2012/3/risk-management_coso-internal-control-guidance?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+cfo%2Fdaily_briefing+%28Latest+Articles+from+CFO.com%29
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Internal Control!
What's internal control?
Academic Standards Control!
What is academic standard control?
"Audit Finds Chicago State U. Lost Track of 950 Computers," Chronicle of Higher Education, March 23, 2012 ---
Jensen Comment
The fraud gets even worse. Because state revenues are based, in part, on enrollment it became impossible to flunk out of Chicago State University. Even David Albrecht's dog could enroll in CSU and never flunk out.
I propose changing the abbreviation from CSU to CSI.
Question
How do you stay in college semester after semester with a grade average of 0.0?
"Chicago State Let Failing Students Stay," Inside Higher Ed, July 26, 2011 ---
http://www.insidehighered.com/news/2011/07/26/qt#266185
Jensen Comment
There is a bit of integrity at CSU. Professors could've just given the students A grades like some other high grade inflation universities or changed their examination answers in courses somewhat similar to the grade-changing practices of a majority of Atlanta K-12 schools. Now that CSU will no longer retain low gpa students, those other practices may commence at CSU in order to keep the state support at high levels. And some CSU professors may just let students cheat. It's not clear how many CSU professors will agree to these other ways to keep failing students on board.
Oops!
Everything is OK in context. I forgot this is Chicago (the most corrupt city in the United States)
Bob Jensen's threads on Professors Who Cheat and Allow Students to Cheat are at
http://www.trinity.edu/rjensen/Plagiarism.htm#RebeccaHoward
Bob Jensen's threads on grade inflation are at
http://www.trinity.edu/rjensen/HigherEdControversies.htm#GradeInflation
Bob Jensen's Fraud Updates are at
http://www.trinity.edu/rjensen/FraudUpdates.htm
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AICPA seeks some changes to COSO’s updated framework proposal ---
http://journalofaccountancy.com/Web/20125441.htm
Question
What is COSO?
Answer --- http://www.coso.org/
Bob Jensen's threads on professionalism and independence ---
http://www.trinity.edu/rjensen/Fraud001c.htm
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"WHAT DOES COSO STAND FOR?" by Anthony H. Catanach and J.Edward Ketz, Grumpy Old Accountants Blog, April 16, 2012 ---
http://blogs.smeal.psu.edu/grumpyoldaccountants/archives/572
Jensen Comment
Sometimes COSO means "Change One Side Only"
But in Spanish it means a place for Bull Fights
The latter definition seems to fit better.
Oh all right!
Question
What is COSO?
Answer --- http://www.coso.org/
AICPA seeks some changes to COSO’s updated framework proposal ---
http://journalofaccountancy.com/Web/20125441.htm
Bob Jensen's threads on COSO are at
http://www.trinity.edu/rjensen/Fraud001c.htm
Search for COSO at the above ling
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COSO Receives Over 90 Comment Letters on ED Updating Internal Control Framework
The Committee of Sponsoring Organizations of the Treadway Commission (COSO), author of the 1992 Internal Control-Integrated Framework, has received over 90 comment letters on its Exposure Draft released for public comment in Dec. 2011 (the subject of the initial post in this thread), on which the comment deadline was March 31, 2012. Various views can be found in the comment letters, including various suggestions for improvements to the ED, as COSO moves toward issuing its finalized update.
In his comment above, Bob Jensen noted an article appearing in the AICPA JofA about the AICPA's comment letter on COSO's ED.
You can read about FEI's comment letter, find links to the ED and all the comment letters, and links to more resources and updates relating to the ED, in the FEI blog here: http://www.financialexecutives.org/KenticoCMS/FEI_Blogs/Financial-Reporting-Blog/March-2012/Comments-Coming-Into-COSO-on-Internal-Control-ED.aspx
For updates from the FEI blog on this and other accounting/financial reporting matters in the standard-setting sphere, please send an email to blogs@financialexecutives.org and write in the subject line: Sign Me Up for the FEI Blog (AAA member).
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COSO: Committee on Sponsoring Organizations of the Treadway Commission in 2012 ---
http://www.coso.org/
Risk Analysis in Accounting Theory ---
http://www.trinity.edu/rjensen/Theory01.htm
Ratios for Return, Valuation, and Risk Analysis ---
http://www.trinity.edu/rjensen/roi.htm
Free Tutorials on Accounting for Derivative Financial Instruments and Hedging Activities ---
http://www.trinity.edu/rjensen/caseans/000index.htm
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Committee of Sponsoring Organizations of the Treadway Commission (COSO) ---
http://en.wikipedia.org/wiki/Committee_of_Sponsoring_Organizations_of_the_Treadway_Commission
What's New with COSO?
2013 Internal Control-Integrated Framework Released
COSO has issued the 2013 Internal Control–Integrated Framework (Framework). The Framework published in 1992 is recognized as the leading guidance for designing, implementing and conducting internal control and assessing its effectiveness. The 2013 Framework is expected to help organizations design and implement internal control in light of many changes in business and operating environments since the issuance of the original Framework, broaden the application of internal control in addressing operations and reporting objectives, and clarify the requirements for determining what constitutes effective internal control.
COSO has also issued Illustrative Tools for Assessing Effectiveness of a System of Internal Control and the Internal Control over External Financial Reporting (ICEFR): A Compendium of Approaches and Examples. The Illustrative Tools are expected to assist users when assessing whether a system of internal control meets the requirements set forth in the updated Framework. The ICEFR Compendium is particularly relevant to those who prepare financial statements for external purposes based upon requirements set forth in the updated Framework.
Read Press Release
Download Executive Summary
Read FAQs
Download PowerPoint Slides
Purchase Framework and Tools
Bob Jensen's threads on managerial accounting ---
http://www.trinity.edu/rjensen/Theory02.htm#ManagementAccounting
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From The Wall Street Journal Accounting Weekly Review on July 26, 2013
"Firms Fortify Fraud Defenses," by Emily Chasan, The Wall Street Journal, July 23, 2013 ---
http://online.wsj.com/article/SB20001424127887324263404578616363792687152.html?mod=djem_jiewr_AC_domainid
Bob Jensen's threads on professionalism and internal control ---
http://www.trinity.edu/rjensen/Fraud001c.htm
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Committee of Sponsoring Organizations of the Treadway Commission (COSO) ---
http://en.wikipedia.org/wiki/Committee_of_Sponsoring_Organizations_of_the_Treadway_Commission
From the CFO Journal's Morning Ledger on September 24, 2014
Bob Jensen's threads on managerial accounting ---
http://www.trinity.edu/rjensen/Theory02.htm#ManagementAccounting
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From the CFO Journal's Morning Ledger on January 7, 2015
Committee of Sponsoring Organizations of the Treadway Commission (COSO) ---
http://en.wikipedia.org/wiki/Committee_of_Sponsoring_Organizations_of_the_Treadway_Commission
"COSO’s ERM framework to undergo update," by Ken Tysiac, Journal of Accountancy, October 21, 2014 ---
http://www.journalofaccountancy.com/News/201411173.htm
What's New with COSO?
From the CFO Journal's Morning Ledger on September 24, 2014
Bob Jensen's threads on managerial accounting ---
http://www.trinity.edu/rjensen/Theory02.htm#ManagementAccounting
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COSO --- http://www.coso.org/
Fraud risk management guidance updated by COSO ---
http://www.journalofaccountancy.com/news/2016/sep/coso-fraud-risk-management-guide-201615264.html?utm_source=mnl:globalcpa&utm_medium=email&utm_campaign=19Oct2016
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