COSO Internal Control- Integrated Framework

On May 14, 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released its revisions and updates to the 1992 document Internal Control - Integrated Framework. COSO’s goal in updating the framework was to increase its relevance in the increasingly complex and global business environment so that organizations worldwide can better design, implement, and assess internal control. COSO believes this framework will provide organizations significant benefits; for example, increased confidence that controls mitigate risks to acceptable levels and reliable information supporting sound decision making.

COSO is a joint initiative of five private sector organizations and is dedicated to providing thought leadership through the development of frameworks and guidance on enterprise risk management, internal control, and fraud deterrence. The AICPA is a member of COSO.

In recognizing technological and business developments along with increased corporate risks, the need to codify existing principles and supporting attributes, as well as provide expanded guidance on nonfinancial reporting, COSO issued the updated framework for public comment in December 2011. Along with 200 other individuals and organizations, the AICPA provided its comments regarding the changes in the exposure document. The framework retains the core definition of internal control and the five components of a system of internal control. Companies that already have an effective system of internal control should not experience additional responsibilities under the clarified framework.

COSO released several documents in conjunction with their announcement.

• 3 Volume Set
  • Executive Summary
  • 2013 Internal Control–Integrated Framework (Framework)
  • Illustrative Tools for Assessing Effectiveness of a System of Internal Control
• Internal Control over External Financial Reporting (ICEFR): A Compendium of Approaches and Examples

The publications above are also available in a comprehensive bundle:

Internal Control - Integrated Framework and Compendium Bundle (2013) This four volume bundle contains COSO's new Internal Control - Integrated Framework, its executive summary, and appendices. In addition, the bundle contains Illustrative Tools for Assessing a System of Internal Control and Internal Control Over External Financial Reporting: A Compendium of Approaches and Examples. Finally, the bundle also includes a link to an Excel file containing four different, customizable templates from the illustrative tools, including overall assessment, components, principles, and deficiencies. News and Resources: COSO Releases New Thought Leader Paper Demonstrating How Frameworks Improve Organizational Performance and Governance  Improving Organizational Performance and Governance: How the COSO Frameworks Can Help (COSO, February 2014)  Five key defenses against risk (Journal of Accountancy, February 2014) Internal Control Publications Internal Control for Today's Smart Business Affordable Care Act holds opportunities, challenges for internal auditors (Journal of Accountancy, November 2013) Internal Audit Oversight (Journal of Accountancy, August 2013)