In November 2010, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) announced a project to review and update its Internal Control—Integrated Framework (original framework). This initiative was expected to make the original framework and related evaluation tools more relevant in the increasingly complex industry, operating, and regulatory environment so that organizations worldwide could better design, implement, and conduct internal control and assess its effectiveness. As the author of the original framework, PwC conducted this project by bringing together in-depth understanding of the original framework and rationale for decisions made in creating the Framework, and sought input from users, stakeholders, and senior resources who provided current perspectives on internal control.

The original framework has been widely accepted by organizations in implementing, designing, conducting, and assessing internal control relating to operations, compliance, and financial reporting objectives, and more recently to internal control over financial reporting in compliance with the US Sarbanes-Oxley Act of 2002 (SOX) and similar regulatory requirements in other countries. Enhancement provided by this project is not intended to change how internal control is defined, assessed, or managed, but rather to provide relevant conceptual guidance and practical examples.

The COSO Board formed an Advisory Council comprising representatives from industries, academia, government agencies, and non-profit entities, and observers from regulators and standard setters to provide input as the project progressed. In addition, the Framework has been exposed to the public to capture additional input. Such due process has helped the update adequately address current challenges for organizations within their internal control.