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Sarbanes Oxley : COSO : Internal Controls

COSO Issues Request for Proposals



Project to Focus on Monitoring of Internal Control

Larry Rittenberg
Chairman
COSO

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) today issued a Request for Proposals (RFP) to develop guidance designed to help organizations monitor the quality of their internal control systems. The end product will serve as a tool for effectively monitoring internal controls, as well as complying with the U.S. Sarbanes-Oxley Act of 2002 (SOX).

According to COSO Chairman Larry Rittenberg, Ph.D., the development of the project will be on an one-year start-to-finish timeline to meet the need for examples, guidance, and more information regarding the monitoring component of COSO?s Internal Control ? Integrated Framework (IC Framework). ?There is a tremendous gap between the value good monitoring brings to a system of internal control and management?s understanding of that value,? says Rittenberg. ?Not only does monitoring equip management with evidence of quality internal controls (or the lack thereof), but also it lays the groundwork for addressing SOX Section 404(a).?

Rittenberg goes on to point out that monitoring is a vitally important component of the IC Framework. He and the COSO Board have high hopes that the project, scheduled for completion by the end of 2007, will stimulate management?s awareness and utilization of effective monitoring; and consequently, will bring about stronger internal controls.

The comprehensive Request for Proposals is available at www.coso.org. The deadline for receipt of Notice of Intent to Respond is November 1, 2006.

Originally formed in 1985 to sponsor the National Commission of Fraudulent Financial Reporting, COSO is a voluntary private sector organization dedicated to improving the quality of financial reporting through business ethics, effective internal controls, and corporate governance. COSO comprises the American Accounting Association (AAA), the American Institute of Certified Public Accountants (AICPA), Financial Executives International (FEI), the Institute of Management Accountants (IMA), and The Institute of Internal Auditors (IIA).






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