In 1985 the National Commission on Fraudulent Financial Reporting, known as the Treadway Commission, was created through the joint sponsorship of the AICPA, American Accounting Association, FEI, IIA and Institute of Management Accountants. Its report, issued in 1987, contained a number of recommendations including a call for sponsoring organizations to work together to integrate the various internal control concepts and definitions. Based on this recommendation, a task force under the auspices of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) conducted a review of internal control literature. The eventual outcome was the 1992 document Internal Control - Integrated Framework.

COSO was important because it emphasised the responsibilities of management for control. It also set definitions for what was included within internal control and the key components of control. COSO compliance is not, however, a mandated requirement in the same way as Cadbury.