In this video, we discuss the COSO and cybersecurity as it is covered on the Information Systems and Controls ISC CPA exam.
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The COSO Framework, or the Committee of Sponsoring Organizations of the Treadway Commission framework, is a model designed to help organizations implement internal controls effectively. It's widely recognized and used around the globe for risk management and to help organizations achieve objectives related to operations, reporting, and compliance.

The framework was first introduced in 1992 and has been updated to respond to the changing business and operating environments. Its most recent update was in 2013, with the introduction of the "Internal Control—Integrated Framework," which expands on the original concepts and provides a more comprehensive structure for implementing and evaluating internal control systems.

The COSO Framework is built around five interrelated components:

Control Environment: This sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure.

Risk Assessment: The identification and analysis of relevant risks to the achievement of objectives, forming a basis for determining how the risks should be managed.

Control Activities: The policies and procedures that help ensure management directives are carried out. They help ensure that necessary actions are taken to address risks to the achievement of the entity's objectives.

Information and Communication: The identification, capture, and exchange of information in a form and timeframe that enable people to carry out their responsibilities.

Monitoring Activities: The ongoing and/or separate evaluations to ascertain whether each component of internal control is present and functioning.

The framework emphasizes that these components are applicable to all entities, regardless of size, and are scalable. It also underscores the importance of management's role in the effectiveness of internal controls within an organization.

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