It's been more than 20 years since the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released its Internal Control—Integrated Framework (the original framework). The new framework became effective in December 2014. Professionals must first obtain a basic understanding of the concepts, principles and potential impact, including changes from the 1992 framework and the key COSO components and related principles.
COSO 2013 maintains the same five components previously identified within the 1992 framework. These include:
- Control Environment
- Risk Assessment
- Control Activities
- Information & Communication
- Monitoring
Each component is now defined by separate principles that underlie the component. Management and the external auditors must understand each of these principles and be able to adequately support that they exist, are appropriately designed and functioning. In addition, the components must effectively work in combination to provide for a positive attestation to internal controls.
The Control Environment is defined as the overall attitude, awareness and actions of directors and management (i.e. "those charged with governance") regarding the internal control system and its importance to the entity. The Control Environment is named as the first component within COSO 2013.
This course is designed to focus on the Control Environment and the five separate principles that support this component.
- The organization demonstrates commitment to integrity and ethical values.
- The Board maintains independence from management and exercises oversight of internal control.
- Management establishes structure, reporting lines, and appropriate authority and responsibility.
- The organization demonstrates commitment to attract, develop and retain competent individuals.
- The organization holds individuals accountable for internal control responsibilities.
“Citations of information on the COSO framework, principles and points of focus mentioned through this course are directly worded from the COSO literature and relayed here with the permission of COSO.org as a training mechanism related to their framework. The full document of the Framework can be found at COSO.org”
Course Series
This course is included in the following series:
7 CoursesCOSO 2013
- COSO 2013 Overview
- COSO 2013 Control Environment
- COSO 2013 Risk Assessment
- COSO 2013 Control Activity
- COSO 2013 Information and Communication
- COSO 2013 Monitoring
- COSO 2013 - Operational Execution
Learning Objectives
- Defining the Control Environment for COSO 2013
- Examine the five principles supporting the control environment.
- Discuss points of focus that support the five principles of the control environment and how to utilize these points of focus most efficiently in your transition process.
- Design of principles vs. execution – understanding the critical difference.
- How the control environment sets the “tone” for the remaining components.
Included In Certifications
This course is included in the following Certification Programs:
13 CoursesEthical Leadership Certification
- History of Ethics
- Ethics and the Psychology Behind the Concept - Part 2
- COSO 2013 Control Environment
- Today’s Corporate Ethical Culture - An updated course
- Managing Through Corporate Politics
- Real World Business Ethics Scenarios
- Relationship between Ethics, Morality, and the Law
- Impact of Ethics on Leadership
- Framework for Ethical Decision Making
- Keys to an Effective Code of Conduct
- Keys to Understanding Conflicts of Interest
- Whistleblower Hotlines - History and Regulations
- Whistleblower Hotlines - Effective Management
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Prerequisites
Prerequisite: Exposure to risk management
Advanced Preparation: None