In this video, I explain the COSO framework as integrated with the Trust Services Criteria (TSC). This topic is covered in the Information Systems and Control ISC CPA exam.
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COSO (Committee of Sponsoring Organizations of the Treadway Commission) and Trust Services Criteria are two frameworks that organizations often use to manage risks and enhance controls. Let's explore each one:

COSO Framework:
Purpose: The COSO framework is a comprehensive internal control framework designed to help organizations effectively manage risks, achieve objectives, and provide reliable financial reporting.
Components: The COSO framework consists of five interrelated components:
Control Environment: The tone at the top, organizational structure, and commitment to integrity and ethical values.
Risk Assessment: The process of identifying, analyzing, and responding to risks that could prevent the achievement of objectives.
Control Activities: Policies, procedures, and other mechanisms implemented to mitigate identified risks and achieve objectives.
Information and Communication: The flow of relevant information across the organization, including communication channels for reporting control deficiencies.
Monitoring Activities: Ongoing assessments of the effectiveness of internal controls and processes.
Applicability: The COSO framework is widely used by organizations of all sizes and industries, particularly for managing risks related to financial reporting and compliance with regulations such as the Sarbanes-Oxley Act (SOX).
Trust Services Criteria:
Purpose: The Trust Services Criteria (TSC) are a set of principles and criteria developed by the American Institute of Certified Public Accountants (AICPA) to evaluate and report on the effectiveness of controls related to security, availability, processing integrity, confidentiality, and privacy.
Components: The Trust Services Criteria consist of five categories:
Security: Controls designed to protect systems and data against unauthorized access, disclosure, or destruction.
Availability: Controls designed to ensure that systems and data are available and accessible when needed by authorized users.
Processing Integrity: Controls designed to ensure the accuracy, completeness, and validity of data processing.
Confidentiality: Controls designed to prevent unauthorized access to sensitive information.
Privacy: Controls designed to protect the privacy of personal information and ensure compliance with applicable privacy laws and regulations.
Applicability: The Trust Services Criteria are commonly used by service organizations, such as cloud service providers and managed service providers, to demonstrate the effectiveness of controls related to security, availability, processing integrity, confidentiality, and privacy to their customers and stakeholders.
In summary, while the COSO framework focuses on internal controls and risk management in general, the Trust Services Criteria are specifically tailored to evaluate controls related to security, availability, processing integrity, confidentiality, and privacy, particularly in the context of service organizations. Both frameworks play important roles in helping organizations manage risks and achieve their objectives effectively.

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