Updated COSO framework – Will your company’s internal controls make the grade?
Abstract: Earlier this year, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) updated its Internal Control — Integrated Framework. The framework is particularly relevant for public companies required by the Sarbanes-Oxley Act to file annual reports on the design and operating effectiveness of their internal controls. This article discusses the five interrelated components of the COSO framework and the enhancements that bring the framework into line with changes that have occurred over the past 20 years. A sidebar lists the 17 principles of effective internal control defined in the updated framework.