Tag Archive: COSO

How the COSO Framework Helps You Comply with SOX

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Published 06/04/2020

In May 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released its updated Internal Control-Integrated Framework. COSO is an organization that aims to improve organizational performance and corporate governance through effective internal control, enterprise risk management, and fraud deterrence. COSO is a joint initiative of five private-sector organizations: the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), the Financial Executives International (FEI), the Institute of Management Accountants (IMA), and the Institute of Internal Auditors (IIA). To implement the COSO internal control framework, you need to assess the new framework’s five components, i.e., control environment, risk assessment, control activities, information and communication, and monitoring activities, as well as its 17 principles against your current…

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Understanding SOX Requirements & The Sarbanes-Oxley Act

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Published 04/27/2017

The Sarbanes-Oxley Act of 2002 (SOX), named after Paul Sarbanes and Michael Oxley, is a law that implements regulations on publicly traded companies. In 2002, the US Congress passed the Sarbanes-Oxley Act (SOX) after a series of public scandals by large corporations such as Enron Corporation, Tyco International PLC, and WorldCom that led to a stock market plummet only a few months before the 2002 elections. The legislation intended to quell public fears of corporate misconduct and to require greater accountability by management and Boards of Directors when reporting financial data. However, Sarbanes-Oxley turned into a larger and more complex piece of legislation than originally planned. The Major Provisions of Sarbanes-Oxley The Sarbanes-Oxley Act of 2002 presented five main provisions. First, it created…