Guidance on Monitoring Internal Control Systems

Based on COSO's Internal Control - Integrated Framework, this guidance is designed to help organizations monitor the quality of their internal control systems. The release of the final project is scheduled for fall of 2008.

News Release

Letter from the Chairman

Volume I - Executive Summary

Volume II - Main Guidance

Volume III - Application Techniques

Review comments received during the exposure period, which ended
August 15, 2008.

Review Disussion Document comments received by COSO on the
exposure of the first phase of the Monitoring project in 2007.

Internal Control over Financial Reporting —

Guidance for Smaller Public Companies

This small business guidance takes the concepts of the 1992 Internal Control – Integrated Framework and demonstrates their applicability for achieving financial reporting objectives of smaller publicly traded companies.

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Enterprise Risk Management —

Integrated Framework

The framework defines essential enterprise risk management components, discusses key ERM principles and concepts, suggests a common ERM language, and provides clear direction and guidance for enterprise risk management. Engaged by COSO to lead the study, PricewaterhouseCoopers was assisted by an advisory council composed of representatives from the five COSO organizations.

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Report of the National Commission on

Fraudulent Financial Reporting

Prevention and earlier detection of fraudulent financial reporting must start with the entity that prepares financial reports. The Commission's recommendations for increased deterrence also involve new SEC sanctions, greater criminal prosecution, improved regulation of the public accounting profession, adequate SEC resources, improved federal regulation of financial institutions, and improved oversight by state boards of accountancy. To encourage educational initiatives, the Commission also recommends changes in the business and accounting curricula as well as in professional certification examinations and continuing professional education.

Summary of Recommendations

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Internal Control — Integrated Framework

Senior executives have long sought ways to better control the enterprises they run. Internal controls are put in place to keep the company on course toward profitability goals and achievement of its mission, and to minimize surprises along the way. They enable management to deal with rapidly changing economic and competitive environments, shifting customer demands and priorities, and restructuring for future growth. Internal controls promote efficiency, reduce risk of asset loss, and help ensure the reliability of financial statements and compliance with laws and regulations.

EXECUTIVE SUMMARY> >

Internal Control Issues in Derivatives Usage

Problems surrounding the use of derivatives in recent years often revolved around difficulty in understanding their risks and their use for risk management purposes. These problems highlight the need for management to develop internal control systems for derivative activities.
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Fraudulent Financial Reporting: 1987-1997 —

An Analysis of U.S. Public Companies

Fraudulent financial reporting can have significant consequences for the organization and for public confidence in capital markets. Periodic high profile cases of fraudulent financial reporting raise concerns about the credibility of the U.S. financial reporting process and call into question the roles of auditors, regulators, and analysts in financial reporting.
EXECUTIVE SUMMARY > >
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