Reponding to COSO's New Enterprise Risk Management Framework

Since 1991, the Internal Control-Integrated Framework has been an accepted U.S. authority for corporate internal control. Issued that year by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the framework presented five interrelated components necessary for effective internal control. Many U.S.-based businesses have implemented the COSO framework in the past 10 years.

The adoption of COSO had accelerated in the past two years given the "perfect storm" that has hit corporate America. Unfortunately, this “perfect storm” of
scandals related to conflicts of interest by analysts and accountants; front-loading income; improper booking of expenses; insider loans; compensation excesses; insider trading; IPO Spinning; overseas bribery; round tripping and network capacity swapping and misuse of Special Purpose Entities seems to continue unabated with almost daily revelations of alleged wrong-doing.

See Summary in pdf format.