AICPA Masses Troops to Fight Auditor Reform
According to AICPA spokesman Joel Allegretti, an e-mail was distributed to 3000 federal key persons - AICPA members who have contact and/or access to lawmakers - urging their assistance in convincing lawmakers to temper the response to requests for reforms.
Former SEC Chairman Arthur Levitt, who was the AICPA's chief adversary in calling for auditor reform during his tenure, expressed remorse for the AICPA's latest move. "I'm saddened that events of recent weeks have not converted (the AICPA) from being mainly an industry cheerleader to a champion of the public interest."
Andersen, which was booted out of the AICPA/Big Five lobbying coalition earlier this week, further distanced itself from the AICPA efforts, indicating support for legislative reform.
The AICPA warned its members in an "action alert" memo Monday about the "cascade effect" - that new restrictions on auditors of publicly traded companies would spill over to affect auditing of all companies, big or small, and federal and state government agencies.
"Members of Congress must be made acutely aware of what would happen if (certified public accountants) were unable to provide consulting and tax services to their small-business clients – and they must be convinced that the cascade effect will occur," the memo says. "This issue has the potential of being harmful in more profound ways than any issue we have faced."
Number of comments: 5
AccountingWEB.com Mar-6-2002
Categories: News Archives, Auditing, AICPA, Legislation
Times read: 2774
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John Haven III , 09 March 2002 @ 02:28 AM
New AICPA What can we do to start a new AICPA?? What that actually represents accountants and not the board members?? Their last scheme with the XYZ global credential clearly wasn't in our interest, and neither is this response to audit issues. My membership will expire since they don't represent me! |
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Joel Sieger , 08 March 2002 @ 15:29 PM
AICPA leads on to disaster The AICPA battle against reasonable reforms (that's what it sounds like) is a sure fire way to turn everyone against CPA's and to undermine their attempt to improve our image. It's this type of leadership which caused me to resign from the AICPA last week. They don't represent me and I have wasted my dues for many years, but no more. |
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Art Berkowitz , 08 March 2002 @ 06:29 AM
So ethics is just for the other guy I'm not sure I understand the AICPA's argument here. If they are saying that bankers, bonding companies and investors in private companies don't have a right to expect that their auditor is independent, then I do not agree? Independence is just as relevant for the user of private company financial statements as it is for public company shareholders. I don't think we can have two levels of ethics. If they are warning Congress and those that are looking to spin off non-attest services that they need to consider the effect on the entire profession, that is a valid point. Any proposal that does not consider the effect on all CPAs should not be endorsed. I do believe that all CPAs need to consider what steps may be necessary to restore public confidence and maintain our independence, both in fact and in appearance. I know that the public expects and I believe what it says in our Code of Professional Conduct - that every CPA is supposed to be objective in every service that we provide including attest, tax, and consulting. Enron has given us the opportunity to reaffirm that trust. Let's not miss the opportunity. |
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Brian Mayhew , 08 March 2002 @ 03:55 AM
AICPA MISS THE POINT Who is leading this organization and what are they thinking? This move again signals the AICPA is out of touch with the big picture. Rather than massing its lobbying effort, it should be looking for ways to reestablish the public's trust in the profession. The AICPA's own research suggests public trust is the profession's core competency. Sure some of the current proposals are ridiculous (i.e. four year rotation), but congress will jam these changes down our throat if we don?t repent and offer up real solutions to the current crisis. |
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fcscpa , 06 March 2002 @ 13:04 PM
better late than never Finally!! I have been wondering why I have paid dues for over 20 years. The silence of the aicpa has been deafening. Finally, it looks like they may be representing our (the profession's) interest. The aicpa is right on this one. The profession does not have little GAAP big GAAP, or little GAAS and big GAAS. Therefore, I am concerned that whatever that great deliberative body inside the beltway does to curb abuse at the big five level, will definitely spill over to the other 47,000 cpa firms in this country. |