CC2.3COSO Principle 15: The entity communicates with external parties regarding matters affecting the functioning of internal control

The following points of focus highlight important characteristics relating to this criterion:

Points of focus specified in the COSO framework:

• Communicates to External Parties — Processes are in place to communicate relevant and timely information to external parties, including shareholders, partners,

owners, regulators, customers, financial analysts, and other external parties.

• Enables Inbound Communications — Open communication channels allow input from customers, consumers, suppliers, external auditors, regulators, financial analysts, and others, providing management and the board of directors with relevant information.

• Communicates With the Board of Directors — Relevant information resulting from assessments conducted by external parties is communicated to the board of directors.

• Provides Separate Communication Lines — Separate communication channels, such as whistle-blower hotlines, are in place and serve as fail-safe mechanisms to

enable anonymous or confidential communication when normal channels are inop?erative or ineffective.

• Selects Relevant Method of Communication — The method of communication considers the timing, audience, and nature of the communication and legal, regulatory, and fiduciary requirements and expectations.