3 Objectives of the COSO Framework and SOC 1
by Joseph Kirkpatrick / June 28th, 2019
SOC 1 and the COSO Framework
If you’re new to the SOC 1 audit process, you might be wondering what framework is used to evaluate the effectiveness of internal controls. This would be the Committee of Sponsoring Organizations of the Treadway Commission, or COSO Internal Control – Integrated Framework. This framework is one of the most common frameworks used to design, implement, maintain, and evaluate internal controls. It outlines three objectives, five components of internal control, and 17 principles related to internal control that organizations must meet to demonstrate compliance.
When undergoing a SOC 1 audit then, organizations should strive to meet COSO’s three objectives for internal control: operations, reporting, and compliance. Let’s take a look at what those are and how they could impact your SOC 1 compliance journey.
How Do the 3 Objectives of COSO Impact a SOC 1 Audit?
Because a SOC 1 audit places a large emphasis on the concept of internal control, meeting the three objectives of COSO is especially important. To do so, consider the following questions:
- Operations: Are the controls that you’ve put into place operating effectively so that you can be certain about the ways that your operations are running the ways you’re expecting them to perform?
- Reporting: What types of reports do you provide to your clients? What is it that they rely upon from you to verify that your services are operating the way they expect them to operate?
- Compliance: What laws and regulations apply to the services that you’re performing so that your clients can rely on your services and be in compliance as well?
Want to get started on your SOC 1 compliance journey? Learn more about the COSO Internal Control – Integrated Framework and how you can meet the three objectives of COSO. Contact us today.
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A SOC 1 audit focuses quite a bit on the concept of internal control. There’s a publication out there from COSO known as the Internal Control Framework, and there are three objectives that you are striving for internal control. The first one has to deal with operations. Are the controls that you’ve put into place operating effectively so that you can be certain about the ways that your operations are running and the ways you’re expecting them to perform? The second one is reporting. What types of reports do you provide to your clients? What is it that they rely upon from you to verify that your services are operating the way they expect them to operate? The third objective is compliance. What laws and regulations apply to the services that you’re performing so that your clients can rely on your services and be in compliance as well?
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