What is the opinion based on the Treadway Commission? (Seeparagraphs below) Please raise thoughtful questions, analyzerelevant issues, build on ideas, synthesize across readings anddiscussions, expand the class perspective, and appropriatelychallenge assumptions and perspectives.

The National Commission on Fraudulent Financial Reporting (TheTreadway Commission) was formed in 1985 in response to a growingconcern over fraudulent financial reporting in corporations andcorruption and waste within public sector organizations. Thecommission was also a response to the 1977 Foreign CorruptPractices Act (FCPA), which criminalized shady, transnationalbusiness practices and required companies under the jurisdiction ofthe Securities and Exchange Commission (SEC) to tighten and monitortheir internal controls. The commission was created and funded bythe five major accounting associations at the time: the AmericanInstitute of Certified Public Accountants (AICPA), the AmericanAccounting Association (AAA), the Financial Executives Institute(FEI), the Institute of Internal Auditors (IIA), and the NationalAssociation of Accountants (NAA).

I believe the most important achievement of the TreadwayCommission was the creation of the Committee of SponsoringOrganizations, known as the COSO Committee. In 1992, the COSOCommittee issued a landmark study in the field of internalcontrols, titled "Internal Control: Integrated Framework," known asthe COSO report. The four-volume report defines the five maincomponents of internal controls: the control environment, riskassessment, control activities, information and communication, andmonitoring. At the time, the report was one standard used bycorporations and governments to assess their compliance with theFCPA. Although not 100% effective in stamping out corruption andfinancial fraud (see, for example, the Enron accounting scandal ofthe early 2000s), the COSO report was successful in that it broughtthe field of internal controls out of its infancy of the 1950sthrough 1970s. It solidified the definition of internal controlsand provided sound guidance - backed by the five major accountingassociations - for corporations and governments to follow. Today,per our text book, it remains the seminal document on internalcontrols in the U.S.