The Committee of Sponsoring Organizations of the Treadway
Commission (COSO) released Internal Control over Financial
Reporting—Guidance for Smaller Public Companies to supplement
Internal Control—Integrated Framework, t he committee’s
landmark 1992 publication that outlined a comprehensive framework for
internal control systems. The new guidance was developed primarily to
help smaller public corporations apply the framework and better comply
with section 404 of the Sarbanes-Oxley Act. Nevertheless, it applies
to organizations of all sizes. “COSO is offering previously
unavailable, but much needed, direction on designing and implementing
cost-effective internal controls,” said AICPA Vice-President of New
Finance John Morrow. “Small company managers and audit committees will
find it invaluable.”
The new publication can be ordered at www.cpa2biz.com/stores/coso3 , and an executive summary and a set of frequently asked questions and answers can be downloaded free at www.coso.org/publications/ and www.aicpa.org/download/news/2006/coso_faq.pdf , respectively.
