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Auditing: COSO Internal Control-Integrated Framework

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You have learned that the internal control framework for most U.S. companies is the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework issued in 1992.

Complete the following:

Identify the Treadway Commission discussing its origin, history, and purpose.
List the five components of internal control as defined by COSO.
Discuss which elements are included in each component as it relates to CSSC.

Objective: Define the components of internal control and describe how an entity's internal controls affect the planning and performance of the audit or assurance service.

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The Committee of Sponsoring Organizations of the Treadway Commission (COSO) was organized in 1985 by representatives from five professional organizations. The original chairman of the National Commission was James C. Treadway, Jr. and hence the name. Their sole purpose was to improve the quality of financial reporting. The five independent members were the American Accounting Association, the American Institute of Certified Public Accountants, Financial Executives International, The Institute of Internal Auditors, and the National Association of Accountants (now the Institute of Management Accountants).

The committee focused on internal controls as a major part of their framework to improve financial reporting and to minimize factors that cause fraudulent financial reporting. The framework also included business ethics and corporate governance, all of which became hot subjects in the early 2000s. COSO's first report, issued in 1992, provided a standardized definition of internal control and announced a framework against which internal control systems can be evaluated.

The ...

Solution Summary

The 594 word, cited solution presents a comprehensive narrative explaining the COSO's frameword for internal control. It traces the history from 1985 to the present. Explanations of several sentences are included for each of the five elements defined to be part of internal control.

See Also This Related BrainMass Solution

Journal Article analysis

I have 3 journal articles on internal controls and need assistance writing a one page response to each of the three summarizing the articles and any strengths and weaknesses with the author's writing on controls and how they are operating.

These are the articles:
1. Hawkins, D. F. (2005). Introduction to the internal control process. Harvard Business School.
2. D'Aquilla, J. (2013). COSO's internal control-integrated framework. The CPA Journal, October, 22-29.
3. Prawitt, D. F., Sharp, N. Y. & Wood, D. A. (2012). Internal Audit Outsourcing and the Risk of Misleading or Fraudulent Financial Reporting: Did Sarbanes-Oxley Get It Wrong? Contemporary Accounting Research, 29 (4), 1109-1136.

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