Coso Podcast Questions

COSO Podcast Questions

1. Who is the guest speaker on the podcast? (Hint: you have heard his voice many times before)

Doug Prawitt

2. What are the 5 original components of the COSO framework? How have the original 5 components been changed?

Control environment, risk assessment, control activities, information and communication, monitoring activities. Seventeen principles are explicitly stated across the five components. In addition, specific points of focus are provided and updated to the framework to help users evaluate those principles. In addition, COSO is releasing two accompanying documents.

3. Why did the framework need to be updated?

Technological environment has changed a lot. To refresh and update the concepts in which the control are explained and laid out. The guidance which is released in 2006 for smaller companies was considered to be helpful for everybody.

4. Who should be involved in the implementing of the new framework?

CFO, CEO, Audit committee, Board of directors, Chief compliance officer, Chief risk officer

5. Explain the points of focus and the 17 principles, what are their purpose, how do they relate to the judgment necessary to implement the framework?

The purpose is to help people evaluate and implement internal control. It’s complicated process so it cannot remove the role of judgment. In addition, it is to help people understand how organizations might carry out implemented effect to seventeen principles in effective way.

6. What is the purpose of internal controls?

Making sure to identify the risks and risk assessments and the controls they implement actually do effectively and efficiently address risks.

7. How will the new framework affect the requirements of SOX 404 reporting?

The biggest effect would be how effectiveness of internal control is evaluated. Make sure that organizations look at their own internal control and make sure they are lined up. Maybe adjust some of the...