Question

Internal control reports issued by public companies must identify the framework used to evaluate the effectiveness of internal control. Which of the following is the most common framework in the U.S.?

1) COSO
2) COBIT
3) ISO 27001
4) ITIL

Answer 1

The COSO framework is the most commonly used for evaluating effectiveness of internal controls in U.S. public companies, providing guidelines for governance, risk management, and internal control processes.

Step-by-step explanation:

Internal control reports issued by public companies in the United States most commonly use the COSO framework. COSO, which stands for the Committee of Sponsoring Organizations of the Treadway Commission, has established a model for evaluating the effectiveness of internal controls that include key components such as control environment, risk assessment, control activities, information and communication, and monitoring activities. This framework is widely recognized and accepted as the industry standard within the U.S., helping organizations manage their governance, risk management, and internal control processes effectively.