How to word the following sentences differently? According to the Committee of Sponsoring Organization (COSO), internal control is defined as a process, effected by an entitys board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: Reliability of financial reporting. Effectiveness and efficiency of operations. Compliance with applicable laws and regulations. The Sarbanes-Oxley Act of 2002 (SOX) 2002 had a profound effect on corporate governance in the U.S. The Sarbanes-Oxley Act requires auditors of Public companies to report to the audit committee the following: The performance of internal control tests. Make directors and officers personally liable for the accuracy of financial statements by making them sign and attest to the accuracy of the Financial Statements. Strengthening audit disclosures.