Professor Elam

Thursday Jan 16, 2014

Two days ago we mentioned that Auditors were digging deeper in response to comments from the PCAOB about the lack of evidence to support adequate internal control. Sure enough I got this from the Institute of Internal Auditors just today.

Companies consider
updating internal controls as documentation requests grow

As external auditors step
up their requests for more documentation about internal controls, companies are
increasingly updating their control processes to stay compliant. Most companies
are using the Internal Control — Integrated Framework provided by the
Committee of Sponsoring Organizations of the Treadway Commission, which was
updated in 2013. Using a framework such as COSO's could give companies a chance
to streamline controls and make audits more efficient, experts say. External
auditors are requesting more documents and details on a wide variety of issues
in response to a warning from the Public Company Accounting Oversight Board
last year. The Wall Street Journal (tiered subscription model)/CFO Journal
blog (1/14), The Wall Street Journal (tiered subscription model)/CFO Journal
blog (1/14)