AICPA Town Hall: Profession Update, AI in Focus, and Internal Controls in a GenAI World

Date: April 9, 2026
Hosts & Guests:

• Erik Asgeirsson (President & CEO, CPA.com)
• Mark Koziel
• Rachel Dresden (DC Team)
• Pascal Fannette (Innovation & AI Expert)
• Danielle Huff (Technical & IRS Update)
• Paul Perry & Lexi Weber (Internal Controls & COSO)

Episode Overview

This episode provides a comprehensive update on the state of the accounting profession, key economic indicators, rapidly evolving AI technology and its impact on the industry, technical developments from the IRS, and crucial updates and guidance on internal controls in the era of Generative AI (GenAI). The discussion spotlights both present challenges and forward-looking strategies for the profession to remain trusted advisors, with a focus on leveraging technology while maintaining ethical and regulatory standards.

Key Discussion Points & Insights

1. Profession Update and Economic Sentiment

[02:10 – 09:26]

• Improved Consumer Sentiment:
  • Recent AICPA Harris Poll shows fewer Americans are delaying major decisions for financial reasons (down to 55% from 61% in 2025).
  • 36% feel better about finances for the next 12 months (up from 33% in 2025), indicating cautious economic optimism.
• Resilience Amid Uncertainty:
  • Ongoing geopolitical and fiscal uncertainties (e.g., Iran, TSA/DHS shutdown) have not significantly hampered U.S. economic performance.
  • "The economy just keeps kind of pushing through it... We're no worse off than last year, the economy's been pretty resilient." – Mark Koziel [03:40]
• Technology Leadership:
  • U.S. remains at the forefront of AI, data centers, and related tech investments.
  • AI trends carry significant implications for the profession’s future.
• ‘Rise 2040’ Vision Project:
  • Ongoing effort to project the profession’s needs 15 years ahead.
  • Major unifying themes: Trust, Ethics, and Integrity remain foundational.
  • "That's what we were built on... and we're going to talk about Gen AI and internal controls over AI and why it is such an opportunity for us." – Mark Koziel [05:26]
• Technology as an Enabler:
  • The evolution from cloud computing to today’s AI is fundamentally reshaping client service models.
  • Compliance tasks are increasingly automated, enabling strategic advisory work.

2. AI in the Accounting Profession: Capabilities and Impact

[20:47 – 36:43]

a) Recent Developments in AI Models

• Major advances in the last 100 days; newer models are not just chatbots but arrive with:
  • Multi-step reasoning
  • File access
  • Autonomy
• “We are now seeing these interesting signals emerging… you marry the probabilistic models … with the generative AI… suddenly it becomes something very different and useful.” – Pascal Fannette [23:45]

b) Changing Client Interactions

• Clients are already cross-verifying advice by running their tax returns through AI like Claude.
• Strategic advisors need to pre-empt AI-driven queries and enhance value-add.
  • “Should the advisor, should the firm have done that first… so that I understand what my client may see, I’ll be better prepared?” – Mark Koziel [26:00]

c) AI in Practice: Buy, Don’t Build (for Most)

• Major vendors will continue to drive SaaS solution innovation; practitioners are urged to buy robust AI-enabled systems rather than building custom AI tools unless they are large firms with the resources.
• "These models have become so good at writing code... but really think about where you want to invest your time and leverage these tools to the best of their capabilities." – Pascal Fannette [27:17]
• Use AI for internal process automations (e.g., ingesting/converting spreadsheets) but maintain controls.

d) Practical Guidance for Firms

• Small firms can access cost-feasible tools; AI is the “great equalizer”—as long as due diligence is done on vendors and enterprise-grade controls are used.
• "The AI tool by itself individually is not all that expensive... even a small firm can do some of these things." – Mark Koziel [36:30]

e) Memorable Quote

• "With great powers comes great responsibility... Can we build it? Should we build it?" – Pascal Fannette [27:17]

3. Safeguards, Data Security, and Regulatory Concerns

[32:30 – 36:43]

• Do not put client or sensitive data into free AI tools.
• Firms should use isolated, enterprise versions of AI tools for data confidentiality and security.
• "Congratulations, you just gave all your personal information in a deep, dark web, right, versus what the firms have." – Mark Koziel [32:56]
• Regulatory landscape is evolving; expect more regulation and enhanced expectations around data management.

4. Washington & Technical Update: IRS, Legislation, Disaster Relief

[13:44 – 44:44]

• Washington Update:

  • Narrower Republican majority in House after Georgia special election.
  • DHS is still unfunded—the longest department shutdown in U.S. history.
  • Budget reconciliation may be used to pass funding, opening the door to possible tax provisions affecting the profession.

• IRS Operations:

  • Direct File usage in 2025 was low (311,000 users of 32 million eligible).
  • Increased reliance on electronic refunds, website usage, and digital outreach.
  • Disaster relief now requires proactive state requests. Only Louisiana and Tennessee have qualified to date.

• Tax Scams & Charitable Contribution Risks:

  • Beware of self-employment tax credit scams and “too good to be true” donation schemes.

• Penalty Relief for Farmers & Fishermen:

  • IRS granted an automatic extension for late filing due to technical disruptions.

5. Internal Controls in a GenAI World

[46:09 – 55:24]

a) Reintroduction to COSO

• COSO’s Internal Control-Integrated Framework (ICIF) provides a common language for managing uncertainty and risk—now adapted for AI/governance.
• "You don't want to do risk analysis… in a vacuum. You want to do it with everybody involved." – Paul Perry [48:28]

b) Applying COSO to Generative AI

• The new COSO guide is not a new framework, but an application of ICIF to GenAI.
• FOMO drives premature adoption; guide emphasizes prudent governance and controls before implementation.
• Steps: Establish governance, assess risks, define controls, monitor, and adapt.
• “The one unique thing that COSO does... is thinking about risks and about uncertainties. We have a whole new set of risks that five years ago we were not even talking about—hallucinations.” – Paul Perry [51:25]

c) Governance, Oversight, and Culture

• New guidance addresses board-level oversight, cultural impact as control, and the need for structured oversight frameworks.
• "Culture and purpose are a control… If you create culture, treat it like a control...it should help your organization." – Paul Perry [53:19]

Notable Quotes & Memorable Moments

• “We are still the trusted profession in business—making sure that we maintain that level of trust… That’s what we were built on.”
  – Mark Koziel [05:26]

• “Can we build it? Should we build it?”
  – Pascal Fannette [27:17]

• “If it’s free, don’t put your data into it. The moment you start paying for it… your data is more secure. Read the terms and conditions—pro tip: you can put them into AI and ask about stipulations.”
  – Pascal Fannette [58:39]

• “You want to do risk analysis… with everybody involved. That’s the biggest piece of… why it matters to everybody within this profession.”
  – Paul Perry [48:28]

Important Timestamps

• Profession & Economic Update: 02:10 – 09:26
• Technology & AI Vision: 08:35 – 12:02
• Washington & DC Update: 13:44 – 20:04
• AI Trends & Practical Guidance: 20:47 – 36:43
• Data Security & Safeguards: 32:30 – 36:43
• IRS & Technical Update: 36:46 – 44:44
• Internal Controls & COSO for GenAI: 46:09 – 55:24
• Open Forum & Lightning Round (Security, Tariffs): 57:08 – 59:17

Additional Resources and Looking Forward

• Upcoming Events:
  • Engage Conference in June, including town hall kickoff and keynotes.
  • AICPA technical webcasts and IRS survey post-busy season.
• Resource Links:
  • AI toolkits and checklists for vendor evaluation at CPA.com townhall
  • COSO guides and AICPA resources on ethics, glossary of terms, and cyber risk.
  • Calls to action: Advocate for K-12 accounting education and fiscal health transparency
• Key Takeaway:
  The episode urges firms of all sizes to maintain rigor in adopting new technologies, drive upskilling, and remain steadfast in ethical leadership as AI transforms the profession. Internal controls, governance, and a strong culture of trust and continuous learning are more crucial than ever.