The Updated COSO Report 2013

Abstract

This paper aims to investigate the issue relating to the internal control system of listed companies, according to the publication of the new framework COSO (Committee of Sponsoring Organization of Treadway Commission) updated in 2013. Since December 15, 2014 came into force the new framework on the procedures to implement and to make use of an efficient system of internal control for listed companies. With the introduction of the new framework, the original framework of 1992 will be considered as the preceding version. The recent 2013 updated framework is considered as an "evolution rather than a revolution". This study will explore the latest changes brought to the 1992 COSO framework and the opportunity arising with the transition to COSO 2013.

Internal Control Systems and Operating Performance: Evidence from Small and Medium Enterprises (SMEs) in Ondo State

“…It will among other things in an organization, ensures high level operational accountability, establishment of goal-oriented procedures and pattern of operation (El-Masri, Orozco, Tarhini, & Tarhini, 2015). According to Provasi and Riva (2015) internal control is a systematic process which does not rely on occasional occurrences; it is a process objectively effect by an entity for optimal goal achievement assurance, effectiveness, efficiency and compliance of operation.…”

“…Control activities is explained by the ruling policy in an organization and implemented by the set procedure. Control activities among other things in an interplay of mechanism geared towards risk mitigation, identification and correction of errors and behaviors that can negatively affect the attainment of organizational objectives (Provasi & Riva, 2015). They are rule based actions carried out at every level of a business entity and at every stages of business operation (KPMG, 2013).…”

“…This component depicts an entity"s capacity to rightly find risks and properly assess these risks with the focus on mitigating the identified risk to the minimum level where it becomes obvious that such a risk will not dampen the prospect of operations. Basically, risk assessment encapsulates the specification of suitable objectives, proactive identification and analysis of risk, assessment of fraud, and analysis of significant change (Provasi & Riva, 2015).…”

“…The internal control system is central in the discourse of operational performance of any organization because it encompasses all efforts put in place by management to ensure efficiency, effectiveness, compliance and reliability of business transaction and communication (Provasi & Riva, 2015). According to Mary, Albert, and Byaruhanga Asian Economic and Financial Review the discourse of operational performance (Committee of Sponsoring Organization [COSO], 2013).…”

Assessing the Impact of Blockchain Technology on Internal Controls Within the COSO Framework

“…An efficacious control environment is typified by a competent organizational climate that exhibits an acute cognizance of its responsibilities and authority boundaries. This climate is marked by an intrinsic motivation to adhere to policies and procedures aimed at achieving business objectives (Riva & Provasi, 2015).…”