COSO

Ghina Rizqy
C1L014020

COSO FRAMEWORK

What is COSO?

COSO is the committee of Sponsoring Organizations of the Treadway Commission. It is a joint initiative of the five private sector organizations listed on the left. It's mission is dedicated to providing thought leadership through the development of frameworks and guidance on enterprise risk management, internal control and fraud deterrence designed to improve organizational performance and governance and to reduce extent of fraud in organizations.

About COSO

Originally formed in 1985, COSO is a voluntary private sector organization dedicated to improving organizational performance and governance through effective internal control, enterprise risk management and fraud deterrence. COSO is jointly sponsored by the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI), the Institute of Management Accountants (IMA), and The Institute of Internal Auditors (IIA).

COSO and Internal Control

COSO internal framework emphasizes that the control procedures required for the critical information technology or information systems such as the financial, operational, and compliance-related.

COSO 2013 Framework

Here are the tittles of the 17 internal control principles by internal control component as presented in COSO's 2013 Framework:

Control Environment

1. Demonstrate commitment to integrity and ethical values

2. Exercises oversight responsibility

3. Establishes structure, authority, and responsibility

4. Demonstrates commitment to competence

5. Enforces accountability

Risk Assessment

6. Specifies suitable objectives

7. Identifies and analyzes risk

8. Assesses fraud risk

9. Identifies and analyzes significant change

Control Activities

10. Selects and develops control activities

11. Selects and develops general controls over technology

12. Deploys through policies and procedures

Information & Communication

13. Uses relevant information

14. Communicates internally

15. Communicates externally

Monitoring

16. Conducts ongoing and/or separate evaluations

17. Evaluates and communicates deficiencies