The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a joint initiative of five private sector organizations and is dedicated to providing thought leadership through the development of frameworks and guidance on enterprise risk management, internal control and fraud deterrence. The AICPA is a member of COSO.

The original COSO Internal Control – Integrated Framework was released in 1992 – before the Internet took hold and before the globalization of business. Recognizing technological and business developments along with increased corporate risks, the need to codify existing principles and supporting attributes as well as provide expanded guidance on non-financial reporting, COSO issued an updated framework for public comment. The framework retains the core definition of internal control and the five components of a system of internal control. Companies that already have an effective system of internal control should not experience additional responsibilities under the clarified framework. Comments on the COSO exposure draft are due March 31, 2012.

Resources available:
Journal of Accountancy Article: COSO Releases Draft of Updated Internal Control Framework
Free webcast on Jan. 31 from 12:30 PM to 2PM EST, to help CPAs understand the proposed update. Registration details well be posted soon.