COSO Internal Control - Integrated Framework (2013) P9: Principle 9: Identifies and analyzes significant change

Changes that might materially affect the system of internal control are identified and assessed. There are three points of focus. External environment: risk identification takes account of changes in the regulatory, economic and physical environment. Business model: the organization considers what new or restructured business lines, acquisitions and divestitures, fast growth, shifting dependence on foreign operations and new technologies mean for internal control. Leadership: changes of management, and changes in managers' attitudes and philosophy toward internal control, are taken into account. Approaches the framework suggests for external financial reporting: assessing how the external environment is changing; carrying out risk assessments tied to significant change; considering change arising from succession; considering changes of chief executive and other senior executives.