Ease the transition to the new COSO framework with practical strategy Internal Control Audit and Compliance provides complete guidance toward the latest framework established by the Committee of Sponsoring Organizations (COSO).

Prior to 1992 when the National Commission on Fraudulent Financial Reporting published Internal Control—Integrated Framework, there were no broad set of criteria against which to evaluate the effectiveness of the auditing entity in controlling its risk of filing materially false financial information and preventing other types of fraud. The COSO Framework filled that void.

Internal Control Audit and Compliance offers auditors, controllers, and accounting managers a comprehensive guide to the latest framework established by the Committee of Sponsoring Organizations (COSO). Written by Lynford Graham—a noted expert on the topic—this important resource offers clear explanations and expert advice on implementation and shows how to document and test internal controls over financial reporting.

The COSO internal control framework identifies five components of internal control: control environment; risk assessment; control procedures; information and communication; and monitoring. Each component has a relationship with and can influence the functioning of every other component, operating in an almost organic way. While these five components remain unchanged, the level of detailed guidance over the years has increased due to the more recent widespread implementation of the framework in the business environment and a desire to have more consistency in the application of COSO principles. Internal Control Audit and Compliance includes detailed information covering each element of the revised framework and puts the emphasis on the latest changes. The author includes explicit definitions of internal controls and shows how they should be assessed and tested. The updated COSO framework also includes financial and non-financial reporting, as well as both internal and external reporting objectives, and Internal Control Audit and Compliance clarifies complex codification.

The newly revised framework identifies seventeen new principles, each of which are explained in detail to help clarify the new and emerging best practices that are designed to enhance efficiency and effectiveness.

To ease the transition from the older and outdated guidelines, Graham reveals an effective strategy for incorporating the new framework into day-to-day operations and offers step-by-step guidance for implementing the new changes.

Ease the transition to the new COSO framework with practical strategy

Internal Control Audit and Compliance provides complete guidance toward the latest framework established by the Committee of Sponsoring Organizations (COSO). With clear explanations and expert advice on implementation, this helpful guide shows auditors and accounting managers how to document and test internal controls over financial reporting with detailed sections covering each element of the framework. Each section highlights the latest changes and new points of emphasis, with explicit definitions of internal controls and how they should be assessed and tested. Coverage includes easing the transition from older guidelines, with step-by-step instructions for implementing the new changes. The new framework identifies seventeen new principles, each of which are explained in detail to help readers understand the new and emerging best practices for efficiency and effectiveness.

The revised COSO framework includes financial and non-financial reporting, as well as both internal and external reporting objectives. It is essential for auditors and controllers to understand the new framework and how to document and test under the new guidance. This book clarifies complex codification and provides an effective strategy for a more rapid transition.

• Understand the new COSO internal controls framework
• Document and test internal controls to strengthen business processes
• Learn how requirements differ for public and non-public companies
• Incorporate improved risk management into the new framework

The new framework is COSO's first complete revision since the release of the initial framework in 1992. Companies have become accustomed to the old guidelines, and the necessary procedures have become routine – making the transition to align with the new framework akin to steering an ocean liner. Internal Control Audit and Compliance helps ease that transition, with clear explanation and practical implementation guidance.