In 1992 the American tread way commission organizing committee (COSO: The Committee of Sponsoring Organization of the Treadway Commission) the frameworkof the internal control whichis published. It is known today, as in fact worldwide standard.
From the seventies betting on the eighties, in the United States window-dressing settlement and management failure of enterprise followed one another, furthermore the illegality payment of the bribe and the like in the foreign country (in US there is the Lockheed incident) to be, had become social political issue.
The American American Institute of Certified Public Accountants which holds the crisis atmosphere in such circumstance (AICPA), the American accounting academic society (AAA), the American financial affairs charge official association (FEI), auditor association inside the United States (IIA), the American accounting human association (NAA: The American managerial accounting human association as new name) it approached afterwards, in 1985 "the national commission regarding illegitimate financial report" (it is called "tread way commission") it organized generally from the name of the chairman as an industry-university-government jointly research organization.
Tread way commission did, "Report of the Commission ON Fraudulent Financial Reporting" with publishing the last report which is entitled, presentation enterprise (the manager), the external auditor, the American Securities and Exchange Commission (SEC) and directing to the other administrative legislatures and the education system, various advices.
In one of big topics of this time, concept of internal control how is defined, there were some whether common framework is made. Because activity is finished as for tread way commission itself with this report, this topic came to the point of being left to COSO.
As for COSO it was the group which originally supports tread way commission public finance, but receiving this advice, it starts illegality prevention and the activity regarding internal control, Kuu pass and ?????? entrusts and "Internal Control - Integrated Framework" (internal control - integrated framework) with the report which is said to draw up, it published in 1992/1994.
This "report" appraisal tool "to" of summary "" framework "external authorized personnel" (1992), and "' report to the external authorized personnel ' supplement" (1994) with in the document which consists of 5 separate volumes which are said, concrete methodology and framework of internal control such as internal control appraisal tool was shown in addition to basic theory and the method of thinking. Framework of this internal control is something which is called "the internal control framework of COSO" or the "COSO framework".
With the COSO framework one newly, it is wider than such as observance, management of compliance and management policy business rule and improvement of effectivenessperformanceof business the range where dealt with the internal control concept which until recently, is considered as the activity which designates the proper characteristic of financial report as purpose.
With COSO, internal control has been defined as follows.
As for internal control, in order to achieve the purpose which is classified below, the fact that rational guarantee is offered was intended, it is one process which is accomplished board of directors, by the manager and the other staffs.
Effectiveness performance of business
Reliability of financial affairs statements
Observance of related law
And as for COSO, the case which lists 5, these it appraises internal control you locate "information and transmission" "supervision activity" as the component of internal control "appraisal" control activity "of" control environment "risk" as standard.
The COSO framework, is the reference model which is written from the point of view that basically it makes internal control the organizational member be thorough who includes the manager from standpoint of the shareholder,, but this the guide which customizes the object and the range in the base each with national is published each field, has become in fact global standard of internal control.
First, the auditing standards SAS78 number where the American American Institute of Certified Public Accountants is based on the COSO framework in 1995 was published. SAC (the internal auditor), and the like also the standard regarding the internal control in, has adopted the method of thinking the COSO framework. In addition at the time of concreteexecution the sir which is enacted in2002 in regard to the internal control which Bence ????? method seeks, in order to do on the basis of the COSO framework SEC has decided.
In Canada "CoCo - the control model" (1995), in Australia "ACC - the Australian control level" (1998), in England the "turn val report" (1999) it is published. The Basel bank supervision commission "inside in banking system the framework of management system" (1998) it is something which designates the COSO model as the base.
In US, financial agency "financial inspection manual" (1999), financial agency enterprise accounting conference "revision auditing standards" (2002), "appraisal of auditing standards commission report control risk" of the of Certified Public Accountants auditing standards commission (2002), the workshop "regarding economic industrial economical risk management internal control and becoming united, guide of the internal control which functioning is done" (2003 etc.) it receives direct/indirect influence. In addition, in the internal control sectional meeting of financial agency enterprise accounting conference basic framework of the internal control which even the indian edition COSO can be said while deciding, it is the schedule which collects the report to 2005 summer.
Furthermore, with COSO in the form which expands the internal control framework, the "enterprise risk management framework" it publishesin 2004, furthermore is 2005 and has started also the decision of the internal control framework for small business.
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