TABLE OF CONTENTS PricewaterhouseCoopers has authored a draft Enterprise Risk Management Framework for the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The draft framework provides a benchmark for organizations to consider in evaluating and improving their enterprise risk management processes.
While there has been much written regarding enterprise risk management, COSO determined there is a need for a broadly accepted framework for enterprise risk management. The project includes a comprehensive validation process with the draft framework being widely circulated for comment prior to being finalized by PricewaterhouseCoopers on behalf of COSO.
The COSO Framework was released in late September 2004. It appears that this framework will be the one most widely used by companies when setting up their internal controls (disclosure controls) system. To date there are a number of software systems available from private software development companies that can provide the basis for a company's system. The price of these systems varies widely and thorough research is required to find the one most suitable for a given company.
Chapter 2 contains an overview of the COSO Framework July 2004 edition [1] as released in September 2004. I appreciate their permission to quote at length from their document. Copies of the entire document can be obtained from the American Institute of Certified Public Accountants. www.aicpa.org. This Manual is intended to provide an idea of the scope and structure of the Sarbanes-Oxley compliance requirements, but it is essential that a company or corporation implementing...
