In 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) issued a comprehensive update to its original 1992 Internal Control — Integrated Framework. This COSO framework is the de facto
framework used by more than 99 percent of the organizations required to comply with Section 404 — Internal Controls over Financial Reporting (ICFR) requirement of the Sarbanes-Oxley Public Company Accounting Reform and Investor Protection Act (SOX). Based on financial filings reviewed through the end of May, 2015, approximately 83 percent of companies subject to the external auditor attestation requirement have transitioned from the 1992 version of COSO to the revised 2013 version.
In this article, Keith Kawashima addresses some SOX-specific questions regarding the application of COSO 2013.