Trintech: Using Automation To Comply With The COSO 2013 Framework
Posted: 2 March 2015 | Source: Trintech
The COSO Internal Control Integrated Framework has recently been updated to reflect transformations in business and operating environments. Originally published in 1992, the updated framework now addresses an increasing dependency on software and IT infrastructure, the growing popularity of joint ventures and outsourcing, as well as rising demands for organizational accountability. Although the intent of the framework has not changed, the underlying principles have been refined to provide guidance for internal controls.
Businesses transitioning to the new framework are tasked with readjusting their current controls by the end of 2014 in order to better align with the 17 principles outlined in COSO 2013. While the impact of change will vary by organization, common gaps are already becoming apparent in three main areas: documentation, performance and reporting.
In order to avoid compliance difficulties, experts advise that organizations check their internal framework for these types of gaps as soon as possible. Transitioning to the revised framework “is going to be more than a one-year process”, according to Bill Schneider, director of accounting and finance at AT&T. Mike O’Leary, global internal audit leader for Ernst and Young agrees: “By and large, the leading-practice companies are being proactive and recognizing this is going to be an important requirement”.
Many high-performing organizations are already choosing to bridge documentation, performance and reporting gaps by implementing an automated solution to manage compliance initiatives. In a single, unified system, Cadency’s Compliance allows businesses to create and test controls, automate workflow and increase visibility into the audit trail.
This paper has been created to help you understand how automated solutions, like Cadency’s Compliance tool, can help your organization comply with COSO 2013. However, it is not a comprehensive compliance guide. Check with your auditors and experts for a more in-depth analysis of your specific organizational needs.