By Edith Orenstein, FEI Financial Reporting Blog - In a comment letter filed on Aug. 15, 2008, FEI’s Task Force on Monitoring (TFM) urged the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to revise the proposed description of the role of the board of directors in its Exposure Draft (ED) entitled, “Guidance on Monitoring Internal Control Systems,” by clearly stating the board’s role is one of oversight, and by better distinguishing the board’s role with respect to internal control from that of management. See FEI TFM comment letter.
A similar observation was made in the comment letter filed by the Center for Audit Quality (CAQ) –affiliated with the AICPA. See CAQ comment letter.
COSO will post all comment letters received on the monitoring ED on its website, www.coso.org. (Note: letters posted currently relate to last year's Discussion Document on Monitoring, a precursor to this year's ED. COSO is in the process of posting the comment letters received on the ED, on which the comment deadline closed Aug. 15.) Read more on this topic here.