COSO's Updated Internal Control and Enterprise Risk Management Frameworks

Applying the Concepts to Governments and Not-for-Profit Organizations

Jill M. D'Aquila, PhD, CPA, and Robert Houmes, PhD, CMA

In May 2013, the Committee of Sponsoring Organizations (COSO) published its revised edition of the Internal Control–Integrated Framework (IC Framework). COSO's actions were in direct response to the changing demands of the business environment over the 20 years since the original framework was issued in 1992 (see “COSO's Internal Control–Integrated Framework: Updating the Original Concepts for Today's Framework” by Jill M. D'Aquila in the October 2013 CPA Journal for a complete description of the IC Framework). A noticeable change in the updated IC Framework is the inclusion of 17 principles to provide detail on applying existing components. PricewaterhouseCoopers has stated that “these principles are relevant for a variety of entities, public, private, not-for-profit” (PWC Dataline, May 14, 2013). Accordingly, while the business community is paying attention to the updated COSO Framework, not-for-profit organizations (NFPO) and governments are also focusing on it.