COSO Launches Project to Develop Guidance on Monitoring

October 18, 2006

FEI Summary

On Oct. 18, 2006, the Committee of Sponsoring Organizations of the Treadway Commission (COSO), issued a press release announcing it is launching a project to develop guidance on use of the Monitoring component of COSO’s Internal Control-Integrated Framework, to strengthen companies internal controls and to make the assessment of internal control over financial reporting under Sarbanes-Oxley Section 404 more efficient and effective.  A Request for Proposal (RFP) was issued by COSO, inviting applications by audit firms, professional services firms or others interested in being considered to lead the project to draft the guidance.

COSO’s goal is to issue this Monitoring guidance by year-end 2007. A whitepaper containing “preliminary views” is targeted for Spring 2007, followed by a public comment period and the final guidance.

Audit firms, professional services firms and others interested in leading this COSO project to develop the guidance on Monitoring, in conjunction with a COSO task force, are encouraged to apply under the RFP. The deadline to file a Notice of Intent to Respond to the RFP is November 1; the completed RFP is due November 21; and interviews of selected candidates will be held by COSO in December. 

FEI is a sponsoring organization of COSO, and will participate on the project task force. 

Prepared Oct. 18, 2006 by Edith Orenstein (eorenstein@FinancialExecutives.org), Director, Technical Policy Analysis, Financial Executives International (FEI). This summary does not represent FEI opinion, unless specifically noted above