Question

Support or critique the idea that the Committee of Sponsoring Organizations of the Treadway Commission (COSO) transition would strengthen internal controls over financial reporting in publicly traded companies. Provide your rationale.

ACC562

Answer 1

In my opinion the Committee of Sponsoring Organizations of the Treadway Commission (COSO) transition would cause strong internal controls in publicly traded companies over financial reporting. The requirement of revamping the Framework arises from the continued evolution of international markets; vital changes to business models and more usage of shared and/or outsourced services; regulation, rule, policy and standard changes becoming more complex thus causing a rise in the demands on companies; the continued innovations in technology for business processes, performance, and decision-making improvements; and higher expectations of stakeholders and regulators for risk management, governance oversight and the prevention and detection of fraud. The technology and globalization have accelerated since 1992. In today's world it seemed prudent to update so that the new framework better reflects the globalization and technology that have become significant part of the business environment currently.