The guidance applies to the internal control objectives over financial reporting, as well as the objectives related to effective operations and compliance. In addition, it includes the principles of effective internal control over financial reporting developed by COSO in 2006, and reiterates the importance of those principles to all organizations, regardless of size.
Topics covered by the guidance include:
- monitoring as a component of internal control systems;
- the fundamentals of monitoring;
- the nature of information used in monitoring;
- designing effective monitoring;
- communicating and addressing the results of monitoring;
- the scalability of monitoring; and
- the principles of effective internal control over financial reporting.
Through an online feedback portal, COSO is asking specific questions about the clarity and applicability of the guidance. The comment period will end on October 31, 2007. Input from respondents will be used in developing an exposure draft, to be released later this year, including tools, case studies, and implementation guidance. The final full publication is scheduled for release during the first quarter of 2008.
In case you don't know, the COSO principles are kind of best of breed when it comes to considering internal control systems, and the Public Company Accounting Oversight Board especially likes it.