Though the components of the Framework remained the same, COSO made significant changes in the applications of the components. The 1992 framework was based on a "factors" approach with supporting "points of focus." COSO 2013 adopts a "principles" based approach, supported by points of focus for each principle.
The revised framewok is made up of 17 principles as follows:
Each component is explored in detail on this site with its related summary, defintions, principles and points of focus.
COSO 2013 contains an expanded section on objectives setting with greater detail on each category of objectives. The reporting relationship of objectives has been expanded to include:
Internal vs. External Reporting Objectives
Financial vs. Non-Financial Reporting Objectives
The combination of the relationships is explored in a matrix approach and delineates the approach to objects in the following combination:
The expanded approach sets the foundation for a more specific and effective risk assessment process.
The new Framework is a much expanded version than the 1992 version. Previously, the 1992 framework could be presented in acceptable detail in a two day course. However, with the complexities and expansions of the COSO 2013 version of the Framework, that no longers holds true.
Courses available for presentation at your location:
The updated framework requires a two day overview course to gain basic familiarity with the overview of the concepts, principles and points of focus. Once the foundation is built, participants are then ready to complete the other courses on specific components.
Follow up courses are offered for specific application of the principles and points of focus of the individual components. The COSO Illustrative Tools for Assessing Effectiveness of a System of Internal Control serve as the basis for principle analysis in the cases and exercises
Summary courses are offered for executive management and governance members that explore the Framework in overview and focus on the roles and responsibilities of all parties involved in the internal control structure.
To have a representative contact you about conducting the course at your organization or chapter, please complete the Request for Information form. A representative will contact within one business day to discuss the details and arrange a course date that suits your organization's needs.