This graphic depicts the reporting requirements under Clause 404 of the Sarbanes-Oxley Act 2002 relating to internal controls of a corporation. In 1992, the committee of sponsoring organizations of the Treadway Commission (COSO) issued a landmark report on internal contol. Internal Contol: Integrated Framework, which is often referred to as "COSO". This provides a sound basis for establishing internal contol systems and determining their effectiveness.Under rthe Sarbanes-Oxley Act 2002 companies are obliged to provide a positive statement on their internal controls. COSO is the only definitive guide available on how this should be done.This graphic depicts the five standards of the COSO Internal Contol Framework. These are: "the control environment", "risk assessment","contol activities", "monitoring" and "information & communication". |
