The Committee of Sponsoring Organizations of the Treadway Commission (COSO), in collaboration with the US National Association of Corporate Directors (NACD), released an exposure draft of its Corporate Governance Framework.
The framework is “designed to complement and align with COSO’s internal control and enterprise risk management frameworks”, a news release said. In May 2024, PwC was selected by COSO as the lead author to develop the framework.
The case for a comprehensive framework for corporate governance comes as companies navigate increased complexity from a broadening risk landscape, technological transformation, and changing business models, requiring strong governance practices for greater agility and resilience, according to COSO’s exposure draft.
“Resilient and well-structured corporate governance is the foundation of trust in capital markets, ethical business practices, and sustainable financial performance,” COSO Executive Director and Chair Lucia Wind said in the release.
The comment deadline is 11 July. Comments can be submitted online. COSO also published answers to frequently asked questions about the framework and the feedback process.
COSO is a joint initiative of five organisations, including the AICPA, dedicated to providing thought leadership on enterprise risk management, internal control, and fraud deterrence.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.