MCAA U3DB initial

MCAA U3DB Initial
Student’s Name
Institutional Affiliation

Committee of Sponsoring Organizations of the Treadway Commission (COSO)
The Committee of Sponsoring Organizations of the Treadway Commission abbreviated as COSO represents a joint initiative that is designed to fight corporate fraud in the United States. The initiative was established by a five sector organizations that were determined to provide the executive management and other governance firms with information related to business ethics, financial reporting, enterprise risk, internal controls, and key aspects of organizational governance (Graham, 2015). COSO was developed to combat the underlying questionable financial practices and corrupt practices that occurred in the mid-1970s in the United States Securities and Exchange Commission (SEC). COSO provides a common internal control system where companies access their internal control systems. Ideally, the COSO framework became more prevalent in 2004 after the release of the Sarbanes Oxley Act of 2002. The framework comprises five core components including the control environment, the information system, the risk assessment process, control activities, and the monitoring of controls.
In the component of the control environment, various elements are evident in the Boyar Company. For instance, the company is structured as a functional company. Following the various divisions in the company, the management makes sure that the internal controls are unifo…