Define the Committee of Sponsoring Organizations (COSO). Explain the original COSO framework and the improvements made in the COSO framework in 2013.
Explanation of Solution
Committee of Sponsoring Organizations (COSO):
Committee of Sponsoring Organizations (COSO) is based on the Statement on Auditing Standards 109 which states the relationship between internal controls, risk assessment of the auditor and the procedures of audit planning. The members from variety of international organizations are included in this organization.
A group of members from different organizations collectively formed COSO to discuss the working of industries and the impact of fraudulent activities in the industry. The main aim to establish COSO was the improvement in financial reporting and prevention of frauds in the industry.
The original COSO framework from 1992 brought a new structure of the internal
Improvements were made in the COSO framework by updating the COSO framework in 2013. The updated version focused on the more compatible and easier application of internal control system.
Want to see more full solutions like this?
Chapter 5 Solutions
AUDITING & ASSURANCE SERV.>CUSTOM<W/AC
- Radium Tech Inc. has net sales of $320,000, cost of goods sold of $210,000, selling expenses of $15,000, and non-operating expenses of $6,000. What is the company's gross profit? Answerarrow_forwardWhat is the amount of cost of goods sold?arrow_forwardAlpha Corporation applies overhead costs to jobs on the basis of direct labor costs. Job O, which was started and completed during the current period, shows charges of $6,850 for direct materials, $10,300 for direct labor, and $6,710 for overhead on its job cost sheet. Job O, which is still in process at year-end, shows charges of $3,500 for direct materials and $5,800 for direct labor. a. Should any overhead cost be applied to Job O at year-end? b. How much overhead cost should be applied to Job O?arrow_forward
- Cullumber & Co. sold goods with a market price of $195,000 on April 1. They accepted a note from Marin Inc. for $195,000 due in two rears, with interest paid each year on April 1, bearing 8% interest. If 8% interest approximates the market rate of interest for this transaction, how much interest should be accrued at the company's December 31 year-end? $31,200 $7,800 $15,600 $11,700arrow_forwardPlease Need answer the financial accounting question not use ai please don'tarrow_forwardCompute the gross earnings for this financial accounting questionarrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education