The COSO internal control framework is an important set or model of guidance materials that

entreprises should follow when developing their business processes, systems, and prodecures
as well as in establishing Sarbanex-Oxley Act (Sox) compliance.

COSO announced in 2011 that they were revising their internal control framework and it was
finally released in mid-May 2014 with full compliance requirement by the beginning of 2015.

Internal control is a process, effected by an entitiys board of director, management, and other
personnel. Designed to provide reasonable assurance regading the achievement of objectives
in the following categories:
Effectiveness and efficiency of operation
Reliability of financial reporting
Compliance with applicable laws and regulation

The changes initiated because of these following factors:

The rise of using contracted services, new organizational structures, and
increased international connections. (Ford Motor Monolithic)
Increased compliance and regulatory requirements.
Recognition that fraud prevention and detection is necessary for effective internal
controls. (Fraud related)
Increased needs for understanding and assessing risk. (grown dramatically)
The constant changes in IT technologies. (the most changed)
Security concern, particularly in cyber crime.
Internal control implications associated with social media and wireless system.

All members must be familiarized and have big concern on COSO internal control framework:
Have integrity and high ethical values
BOD must shown their independence and give oversight to the management in
practicing internal controls.
Obey the authorities, commitment to be competent, and accountable for their
internal control framework.

The changes of revised COSO lies beneath:

Expanded governance oversight
Increased global market and operation
Myriad demand of laws, rules, regulations, and standards
Fast-evolving technology
Prevent and detect corruption
The control environment
encompasses the culture, ethical
values, teamwork, morale, and
development of administrative
employees.

Risk response strategy

(Avoidance, sharing, reduction,
acceptance)
Risk asessment map