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Governance, Risk, Audit & Privacy · Intermediate

COSO Internal Control Integrated Framework

Widely used framework for designing and evaluating internal controls, with five components and 17 principles.

Definition

The COSO Internal Control framework (2013) defines five components: control environment, risk assessment, control activities, information and communication, and monitoring activities. It underpins SOX Section 404 assessments of internal control over financial reporting. Its objectives cover operations, reporting, and compliance.

Example

A public company uses COSO 2013 to document and test its financial reporting controls for SOX.

Exam tip

Control environment, often called tone at the top, is the foundation of COSO.

Related terms