COSO Framework
By: A Staff Writer
Updated on: Jul 19, 2024
What: Comprehensive framework for internal control, used to ensure reliable financial reporting, safeguard assets, and comply with regulations.
Who: The Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Why: Helps entrepreneurs prevent fraud, operational errors, and reputational damage that can destroy a business.
When: As your business grows more complex, or when required by law/investors. Smaller companies can implement the principles too.
How:
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- Focus on the control components most relevant to your risks.
- Internal control is everyone’s responsibility, not just the finance team’s.