COSO Board Chair: Position Description
January 14, 2009
FEI Summary

In January, 2009 the Committee of Sponsoring Organizations of the Treadway Commission (COSO) commenced its search for a new chair of the COSO board. The current chair's term ended in 2008, and the current COSO board chair, Professor Larry Rittenberg, continues to serve on an interim basis during the board chair search. Refer to the COSO Board Chair Position Description, which includes as an attachment COSO's Mission and Operating Policies as background. Additional background about COSO can be found below.

COSO was formed in 1985 to sponsor the National Commission on Fraudulent Financial Reporting, an independent private-sector initiative which studied the causal factors that can lead to fraudulent financial reporting. The five sponsoring organizations of COSO are: the American Institute of CPAs (AICPA), the American Accounting Association (AAA), Financial Executives International (FEI), the Institute of Internal Auditors (IIA), and the Institute of Management Accountants (IMA).

COSO is perhaps best known for its 1992 Internal Control-Integrated Framework. The framework is recognized by the U.S. Securities and Exchange Commission, and the Public Company Accounting Oversight Board as a suitable generally accepted farmework for purposes of internal control reporting under Sarbanes-Oxley Section 404. Additionally, the AICPA  references COSO in its standards for audits of private companies.

COSO continues to update its guidance in recognition of changing times. For example, in 2004 COSO published guidance on Enterprise Risk Management (ERM). In 2006, COSO published Guidance for Smaller Public Companies. In January, 2009, COSO is expected to issue Guidance on Monitoring Internal Control Systems. (When issued, the new guidance will be posted on COSO's website, www.coso.org.)

UPDATE: The application deadline is March 15. If you would like further information, contact Edith Orenstein at FEI at eorenstein@financialexecutives.org or 973-765-1046.

UPDATED Feb. 25, 2009 by Edith Orenstein, Director, Technical Policy Analysis, Financial Executives International (FEI). This summary does not represent FEI opinion unless specifically noted above.