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Internal Controls at the Institute

Emerging Topics

There continue to be emerging topics related to internal control which demand the attention of the Audit Committee, senior Institute management, and internal audit. Among these are:

The Sarbanes-Oxley (SOX) Act of 2002 is the public company accounting reform and investor protection act. The SOX Act passed in response to high-profile business failures, such as Enron and WorldCom, in order to reinforce investment confidence and protect investors by improving the accuracy and reliability of corporate disclosure.

Enterprise risk management (ERM) encompasses the methodology and process used to manage risks (including risk optimization) related to the achievement of enterprise business objectives. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) provides a framework for risk management (Enterprise Risk Management – Integrated Framework) which incorporates exposure identification relevant to the organization's objectives (downside and upside risks, including opportunities), assessing exposure in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress. By identifying and proactively addressing risks and opportunities, business enterprises create and protect value for stakeholders, including owners, employees, customers, regulators, and society overall.

The Professional Ethics Executive Committee (PEEC) is a senior technical committee of the AICPA charged with the responsibility of interpreting and enforcing the AICPA Code of Professional Conduct (Code). This section offers information, tools, and resources to assist AICPA members meet their ethical responsibilities under the Code.