The Committee of Sponsoring Organizations of the Treadway Commission (COSO) recently updated its Internal Control Integrated Framework (Framework) to ensure it remains relevant in the changing business environment. A Draft for Public Exposure is currently available on COSO’s website.
Key items of the Framework have not changed in the updated version including the core definition of internal control, the three control objectives, and the five components of internal control. If your Company already has an effective internal control system, you will not need to make any significant updates under the updated Framework.
The updated Framework includes codification of the internal control concepts introduced in the original Framework. The codification occurs within the five (5) categories of control environment, risk assessment, control activities, information and communication and monitoring activities. The following is a summary of the seventeen (17) internal controls principles.