A perfect storm: PCAOB Board Member Jeanette Franzel shares her personal views on internal audit's role in financial reporting and implementation of COSO 2013.

Author:Franzel, Jeanette
Position:Practices/Update - Public Company Accounting Oversight Board - Brief article

Does the updated COSO Internal Control-Integrated Framework present an opportunity to improve internal and external audit's assessments of internal control over financial reporting (ICFR)? I have recently referred to this opportunity as the "perfect storm" in internal controls. Management and internal auditors are navigating COSO 2013 at the same time that audit firms are responding to Public Company Accounting Oversight Board (PCAOB) inspection findings in their audits of ICFR. I have heard a number of participants in the financial reporting and auditing chain admit that they have "dropped the ball" on internal controls over the past few years. It is time to take a fresh look to ensure that the internal control regime is providing the intended value and benefits while safeguarding against threats.

Are there certain deficiencies commonly found in ICFR audits that internal audit should give more focus? Many of the deficiencies occur when the auditor...

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