View in browser


	ISSUE 7 \| JULY 2025


	At-A-Glance The Committee of Sponsoring Organizations (COSO) was formed in 1985 by several national accounting associations in the USA with a mission to “help organizations improve performance by developing thought leadership that enhances internal control, risk management, governance and fraud deterrence.” Over the years, COSO has issued various forms of guidance including two frameworks. Now, a proposed new guide, Corporate Governance Framework, has been published for consideration. This issue provides highlights. Also, our Worldwide Update covers news from organizations across the globe.


	Gerald Herter - Editor


	The New Corporate Governance Framework A comprehensive, yet practical guide to enhance "clarity, agility, and oversight"


	In the inaugural February 2012 issue of the Audit & Accounting Alert, the first topic covered was the exposure draft for the update of Internal Control - Integrated Framework, issued by COSO. That update was finalized in 2013. Then in November 2017, the Alert covered COSO’s expansion of the Enterprise Risk Management — Integrated Framework (ERMIF), with the Enterprise Risk Management—Integrating with Strategy and Performance. Continuing the progression, COSO on May 27, 2025, published the proposed Corporate Governance Framework (CGF). Noting “today’s complex environment—marked by shifting expectations, disruptive technologies, and evolving business models,” COSO determined that the time was right for definitive guidance, rather than wait for another commercial catastrophe to demand action. COSO’s definition states that “Corporate governance involves the oversight and processes by which an informed board and management team steers an entity toward executing its strategies and goals while maximizing long-term shareholder value in an ethical manner and within the relevant legal and regulatory environment.” The following are listed as the drivers of corporate governance: 1.State Corporate Law 2. Federal Statutory and Regulatory 3. Stock Exchange Listing Requirements 4. Market-Based Solutions or Rules The case for corporate governance is based on these principles: 1. Corporate Governance Is a Competitive Advantage Organizations that put serious time and attention to steering their entities in appropriate directions with intentional leadership will fare better than those that don’t. 2. The Risk Landscape Is Broadening The factors involved with operating in the world become continually more intricate, calling upon sophisticated approaches and consideration to succeed. 3. Issue-Specific Governance Is Increasing Complexity The variety of diverse areas to contend with favor organizations capable of recognizing the differences and finding ways to bring them together effectively and efficiently. 4. Entities Are Adapting to a Multi-Stakeholder Model Shareholder interests are bolstered by adequately taking into account and dealing with external stakeholder concerns and impacts. 5. Technology Is Transforming Information and Communication New and advancing technologies are proceeding at a rapid pace, demanding constant and informed awareness of added capabilities and ongoing threats. 6. Governance Is at All Levels The tone at the top must be infused and reflected throughout the organization to attain the most value for accomplishing the organization’s mission. The CGF is built upon 24 principles centered on six core components, as follows: Oversight: 1. Establish Board Structure and Exercise Oversight 2. Appoint Board Leadership and Members 3. Select CEO and Delegate Authority 4. Establish Executive Structure and Effectively Manage 5. Operate the Board Effectively 6. Uphold Shareholder Rights and Accountability Strategy 1. Define Purpose and Core Values 2. Develop and Communicate the Strategy 3. Execute the Strategy 4. Measure Performance Against Strategy and Adjust Culture 1. Establish and Model Culture and Behaviors 2. Promote Ethics, Respect, and Open Communication 3. Assess and Adapt Culture People 1. Deploy People Strategy and Succession Planning 2. Manage People and Compensation 3. Drive Performance and Development Communication 1. Commitment to Information Quality 2. Engage Stakeholders Strategically 3. Communicating Effectively with Internal Stakeholders 4. Communicate Effectively with External Stakeholders Resilience 1. Manage and Oversee Risks and Opportunities 2. Manage Compliance Responsibilities 3. Establish and Evaluate Internal Control 4. Monitor Governance Effectiveness For each principle, the CGF provides insights with its Points of Focus, and, in some cases, Deeper Insights and Leading Edge Considerations. The CGF is a comprehensive guide for entities of all sizes and environments. The principles are not meant to be rules, but rather provide substantive and wide-ranging support for all aspects of running a business. Public comments on the draft were due by July 11, 2025. Further details can be found at Corporate Governance Framework - Public Exposure Draft.


	Worldwide Update Periodic roundup of recent and upcoming actions and activities by auditing and accounting organizations throughout the world.


	International IASB – International Accounting Standards Board (www.ifrs.org) Exposure Draft Proposed Amendments to the Industry-based Guidance on Implementing IFRS S2, issued July 3, 2025, “to maintain alignment with climate-related content in the SASB Standards.” Comments are due by November 30, 2025 Exposure Draft Proposed Amendments to the SASB Standards, issued July 3, 2025, to “present a comprehensive review of nine industries that were prioritised (all eight industries in the Extractives & Minerals Processing sector and the Processed Foods industry)” and to “align some metrics in a further 41 industries for topics such as Water Management and Workforce Health & Safety.” IFRS Practice Statement 1 Management Commentary, published in June 2025, “supports improvements to and greater global alignment in management commentary and narrative reports accompanying the financial statements...to serve as a global benchmark for regulators to use in updating or developing their national requirements and guidance. It would also provide a comprehensive resource for companies to help meet investors’ information needs.” IFAC – International Federation of Accountants (www.ifac.org) Implementing International Public Sector Accounting Standards (IPSAS): IFAC Tools, compilation issued June 16, 2025, “that: 1. Offer practical implementation guidance through the transition from cash to accrual, tailored to different contexts and reform stages, and; 2. Help build capacity and technical knowledge with training materials, templates, and examples.” Advancing Risk Management and Culture: Connecting Disclosure to Strategic Decision-Making, article published June 30, 2025, “discussed how risk culture is increasingly important in raising risk awareness, improving decision making, and enhancing risk reporting and disclosure.” IFR4NPO - International Financial Reporting for Non-Profit Organisations (www.ifr4npo.org) No new developments. IOSCO – International Organization of Securities Commissions (www.iosco.org) No new developments. ACCA – Association of Chartered Certified Accountants (www.accaglobal.com) The future of financial reporting 2025: Emerging technology and corporate reporting, discussion paper published June 30, 2025, covering “the multifaceted ways in which technology could help the accountancy profession improve the delivery of relevant and reliable information in the corporate reporting ecosystem.”


	Africa, Europe, India and the Middle East (AEIME) FRC – Financial Reporting Council of the UK (www.frc.org.uk) AI in Audit, guidance published June 25, 2025, covering “an illustrative example of a potential use case of AI to enhance procedures over journals, and guidance on documenting tools that use AI.” ICAEW - Institute of Chartered Accountants in England and Wales (https://www.icaew.com/) No new developments. EC – European Commission (https://ec.europa.eu/) No new developments. EFRAG – European Financial Reporting Advisory Group (www.efrag.org) No new developments.


	Americas, Asia, Australia and New Zealand (AAANZ) AICPA & CIMA – American Institute of Certified Public Accountants (www.aicpa.org) Exposure Draft - Proposed Criteria for Controls Supporting Token Operations: Specific to Asset-Backed Fiat-Pegged Tokens, issued June 12, 2025, “has identified a need for criteria to evaluate whether controls are suitably designed and operating effectively to achieve the control objectives of token operations, over a specified period of time.” Comments are due by August 11, 2025. FASB – Financial Accounting Standards Board (www.fasb.org) No new developments GASB – Governmental Accounting Standards Board (www.gasb.org) Implementation Guidance Update—2025, published June 25, 2025, to provide guidance that clarifies, explains, or elaborates on GASB Statements. COSO - The Committee of Sponsoring Organizations of the Treadway Commission (www.coso.org) No new developments. PCAOB – Public Company Accounting Oversight Board (www.pcaob.org) No new developments. SASB – Sustainability Accounting Standards Board (www.sasb.org) No new developments SEC – Securities and Exchange Commission (www.sec.gov) No new developments


	Additional A&A News How technology could rewire corporate reporting 41% Of AI Tools Target Tasks Workers Don’t Want Automated What agentic AI will mean for finance Audit accelerates ICAEW proposes four principles to future-proof reporting accountants CPA judgment still needed despite uptick in AI use


	Audit & Accounting Alert is a publication of Integra International intended to highlight emerging issues in the profession. The goal is to give Integra members an awareness of developments impacting the practice of Audit & Accounting enabling them to stay on the forefront of industry trends.This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. Editor Gerald E. Herter Email: [email protected] www.Integra-International.net © 2021 Integra International. All Rights Reserved. If you wish to stop receiving email from us, you can simply remove yourself by visiting http://members.integra-international.net/members/EmailOptPreferences.aspx?id=66979517&e=lois.pares@integra-international.net&h=d523ac69369762eb987573d57c33e956f959035d.