April 2010

Could Codification Weaken Internal Controls?

Maybe. And here's what you can do to mitigate the effect on your accounting policies, disclosures, and error detection.

From CFO.com.

On July 1, 2009, the Financial Accounting Standards Board formally adopted its Accounting Standards CodificationTM (ASC) as the source of authoritative generally accepted accounting principles for nongovernmental entities in the United States. The codification profoundly changed the way U.S. GAAP is documented, updated, referenced, and accessed.

Shortly before its adoption, most financial executives weren't even aware that the codification was coming (see "Will the New FASB Code Change Accounting?"). And even those who knew it was on the way often failed to recognize its potential to introduce new weaknesses in internal control over financial reporting (ICFR). In this article, I'll describe the impact of the codification on ICFR, as well as what you can do to mitigate the impact.

Full article.

Leave a comment


Contact

Blackman Kallick
10 South Riverside Plaza
9th Floor
Chicago, IL 60606-3770

p 312-207-1040
f 312-207-1066
info@BlackmanKallick.com

Get Directions

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.