Accounting Professor Larry Rittenberg to Lead National Effort on Quality of Financial Reporting

December 8, 2004

Accounting Professor Larry Rittenberg has been named chair of a key national organization working to improve the quality of financial reporting.

As of Jan. 1, Rittenberg will serve a three-year term as chair of COSO, the Committee of Sponsoring Organizations of the Treadway Commission. The sponsoring organizations are the five major professional associations in the United States: the American Accounting Association, the American Institute of Certified Public Accountants, the Financial Executives Institute, the Institute of Internal Auditors and the Institute of Management Accountants. Rittenberg's predecessor in the chairs post was John Flaherty, chairman, retired vice president and general auditor for PepsiCo Inc.

COSO was originally formed in 1985 to sponsor the National Commission on Fraudulent Financial Reporting, which came up with key recommendations for improving accountability in financial reporting. The voluntary, private-sector organization is dedicated to improving the quality of financial reporting through business ethics, effective internal controls and corporate governance.

According to Rittenberg, COSO has played an important role in developing frameworks for risk management and internal controls for companies to follow. Rittenberg said his first major project as chair will be to develop guidelines to help smaller companies meet upcoming regulations regarding internal controls in order to make the process more efficient and economical.

"Im only able to tackle a major commitment like this because of the support of the Accounting Department and the School of Business," Rittenberg said. "The fact that I was chosen to chair COSO is recognition that the academic community brings something to the table and can provide some leadership on these issues. The opportunity to take and apply research where it can make a difference in how companies operate is very satisfying. Plus, I will learn much that I can bring much back to the classroom."