Rittenberg Leads COSO Effort on Monitoring Internal Controls

The Committee of Sponsoring Organizations of the Treadway Commission (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, which is chaired by Accounting Professor Larry Rittenberg, has 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 Rittenberg, “There is a tremendous gap between the value good monitoring brings to a system of internal control and management’s understanding of that value.” 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.