Reframing the Discussion on Internal Control

Implications of the Updated COSO Framework for Small and Entrepreneurial Organizations

Anne M. Wilkins, DBA, CPA, and Amie L. Haun, EMBA, CPA, CFE

Although CPAs are uniquely qualified to assist small and entrepreneurial businesses in improving their internal control systems, their recommendations are often quickly dismissed as costly or unnecessary bureaucracy. Many smaller entities associate internal control with a simple separation of duties—a powerful internal control itself—but it is much more than just maintaining security. CPAs should reframe the discussions they have on internal control in accordance with the newly updated Committee of Sponsoring Organizations (COSO) Internal Control—Integrated Framework (http://www.coso.org/documents/990025P_Executive_Summary_final_may20_e.pdf).