Topic _6 Summary - Group 6 Siska Gultom TuNhi Le Andy Liu...

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Group 6 Siska Gultom TuNhi Le Andy Liu Steve Reh Executive Summary Committee of Sponsoring Organizations of the Treadway Commission (COSO) In the mid-1980s, the American Accounting Association (AAA), American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI), Institute of Internal Auditors (IIA) and the Institute of Management Accountants (IMA) came together to sponsor a voluntary group to address the increased frequency in fraudulent financial reporting. This group, later known as the Committee of Sponsoring Organizations of the Treadway Commission (COSO), inspected, analyzed, and made recommendations on corporate financial reporting. In 1992, COSO published the Internal Control-Integrated Framework , which defined internal control, provided a framework for assessment and improvement of internal control, and set a standard used for compliance with the Foreign Corrupt Policies Act (FCPA). In 2004, COSO published the Enterprise Risk Management-Integrated Framework (ERM) to include more risk management. Internal Control vs. Enterprise Risk Management Integrated Framework Achievement Objectives The I/C-Integrated Framework and the ERM-Integrated Framework are similar in many ways in that the ERM Framework expands on the Internal Control Framework. Both have the following three achievement objectives: 1. Operation Objective – Effectiveness and efficiency of company operations, such as performance, profitability goal and safeguard assets policies 2. Reporting Objective – Accuracy, completeness and reliability of internal and external company reports 3. Compliance Objective – Compliance with all applicable laws and regulations
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This note was uploaded on 04/22/2011 for the course ACCY 360 taught by Professor T during the Spring '08 term at Northern Illinois University.

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Topic _6 Summary - Group 6 Siska Gultom TuNhi Le Andy Liu...

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