AbstractThe Committee of Sponsoring

Abstract
The Committee of Sponsoring Organizations of the Treadway Commission’s (COSO’s) Internal Control—Integrated Framework (COSO framework) is used by virtually all business and governmental entities in the United States and is widely used in major countries across the world. This widespread use is a testament to the quality and ease of use of the COSO framework, so why change it? The COSO framework is being changed to keep it relevant in the current and future business world, to emphasize its relevance beyond just financial reporting, and to make it easier to use.
This white paper lays out the rationale for changes that are underway in the COSO framework and highlights the implications for CPAs, regardless of whether they are in public accounting or business; with large companies or small companies; or in the profit or not-for-profit sector. The COSO framework was developed to be timeless, and it has shown itself to be conceptually sound and capable of evolution. The updated guidance is intended to further clarify aspects of the COSO framework and to provide guidance that will facilitate both its implementation and the evaluation of internal control. CPAs are encouraged to read the COSO exposure draft and comment on the changes in the COSO framework.
Prepared by
Larry Rittenberg, PhD, CPA, CIA
Professor Emeritus, University of Wisconsin—Madison
Former Chair of COSO
Charles E. Landes, CPA
AICPA, Vice-President Professional Standards Group
COSO Board Member