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.
I need help completing these questions in 300-400 words:
1. Identify the Treadway Commission discussing its origin, history, and purpose.
2. List the 5 components of internal control as defined by COSO.
- Discuss at least 2-3 elements are included in each component
The Treadway Commission was formed in 1985. This was a private sector initiative. The origin is that because of the rise in political campaign finance practices and foreign corrupt practices, the mid-70s of the US Securities and Exchange Commission and the US Congress enacted campaign finance law reforms and passed the Foreign Corrupt Practices Act 1977. The purpose of The Treadway Commission was to inspect, analyze, and make recommendations in October 1987. The Treadway Commission examined the financial information system in place between 1985 and 1987 and issued a report of findings and recommendations in October 1987. As a result of ...
This posting gives you a step-by-step explanation of how internal control is achieved in US companies. The response also contains the sources used.