Guidance Shows How to Strengthen the Integrity of the Financial Reporting
TORONTO, Feb. 18 /CNW/ - Grant Thornton LLP (U.S.), announced, in
conjunction with The Committee of Sponsoring Organizations of the Treadway
Commission (COSO), the release of "Guidance on Monitoring Internal Control
Systems." The Guidance - developed by COSO and authored by a Grant Thornton
team led by U.S. National Managing Partner of Corporate Governance Trent
Gazzaway with members from Grant Thornton LLP (Canada) and Raymond Chabot
Grant Thornton LLP (Canada) - is designed to help organizations to better
monitor internal control of financial systems and to take timely corrective
actions with respect to problems in the reporting processes.
"Effective monitoring helps ensure that internal control continues to
operate effectively," said Denis Posten, Partner, with Grant Thornton LLP
(Canada). "Many organizations are not fully utilizing the monitoring component
of internal controls. Businesses can adapt this Guidance and improve controls
and reduce the costs."
The Guidance, comprising three volumes, illustrates examples of effective
prevention and monitoring of weaknesses in design and operation of internal
controls. "Volume I: Guidance" presents the fundamental principles of
effective monitoring, linking to COSO's Internal Control - Integrated
Framework. "Volume II: Application" conveys in greater detail the principles
outlined in Volume I and provides guidance to those responsible for
implementing effective monitoring. "Volume III: Examples" provides case
studies of internal control monitoring.
"During an economic downturn, when confidence in the financial sector is
low, companies need to look at their internal financial reporting processes
and proactively implement corrective measures, to mitigate risk, improve
governance and ensure the accuracy of financial statements," said John S.
Cochrane, Delegate Partner, Assurance, with Raymond Chabot Grant Thornton LLP
COSO engaged Grant Thornton in January 2007 to lead the development of
the project after concluding there was a need for more guidance on effectively
monitoring internal controls, as well as complying with the U.S.
Sarbanes-Oxley Act of 2002 (SOX). The oversight task force consisted of
representatives from COSO's five sponsoring organizations and other experts;
participants from the U.S. Government Accountability Office; and
representatives from audit firms and both large and small companies; as well
as project observers from the SEC and the PCAOB. The project was exposed for
public comment before final publication.
The introduction can be downloaded for free from COSO's Web site at
www.coso.org. The Guidance is available both in electronic and hard-copy
format and can be purchased at
About Grant Thornton LLP in Canada
Grant Thornton LLP is a leading Canadian accounting and advisory firm
providing audit, tax and advisory services to private and public
organizations. Together with the Quebec firm Raymond Chabot Grant Thornton
LLP, Grant Thornton has more than 3,100 people in offices across Canada. Grant
Thornton LLP is a Canadian member of Grant Thornton International Ltd, whose
member and correspondent firms operate in over 100 countries worldwide.
About Grant Thornton LLP (U.S.)
The people in the independent firms of Grant Thornton International Ltd
provide personalized attention and the highest quality service to public and
private clients in more than 100 countries. Grant Thornton LLP is the U.S.
member firm of Grant Thornton International Ltd, one of the six global audit,
tax and advisory organizations. Grant Thornton International Ltd and its
member firms are not a worldwide partnership, as each member firm is a
separate and distinct legal entity.
About Raymond Chabot Grant Thornton LLP
Founded in 1948, Raymond Chabot Grant Thornton LLP has become one of the
leaders in assurance, taxation, consulting, recovery and reorganization
services. The Firm owes its success to more than 2,000 employees, including
over 240 partners, operating in more than 90 offices across Québec, eastern
Ontario and New Brunswick. As a member firm within Grant Thornton
International Ltd we have access to member and correspondent firms in over 100
countries, offering our clients specialist local knowledge supported by
international expertise and methodologies.
About Grant Thornton International Ltd
Grant Thornton LLP is a Canadian member firm of Grant Thornton
International Ltd (Grant Thornton International). Grant Thornton International
and the member firms are not a worldwide partnership. Services are delivered
by the member firms independently.
Originally formed in 1985 to sponsor the National Commission on
Fraudulent Financial Reporting, 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
comprises the American Accounting Association (AAA), the American Institute of
Certified Public Accountants (AICPA), Financial Executives International
(FEI), the Institute of Management Accountants (IMA), and The Institute of
Internal Auditors (IIA). www.COSO.org
For further information:
For further information: Sarah Thompson, PUNCH Canada, (647) 837-1266,
email@example.com; Susi Tarleton, Grant Thornton LLP, (416) 369-7002,
starleton@GrantThornton.ca; Silvia Preziosi, Raymond Chabot Grant Thornton,
(514) 954-4640, firstname.lastname@example.org