AICPA Describes Transition to New Regulatory Framework
The American Institute of CPAs (AICPA) has e-mailed an alert to its members, advising them of its plans for transitioning to the new regulatory framework established by the Sarbanes-Oxley Act of 2002.
As part of its transition plan, AICPA will:
- Work with the Securities and Exchange Commission (SEC) to establish an orderly transition of the activities of AICPA's SEC practice section.
- Work with the public accountability board or the SEC to help them understand the importance of auditors providing tax services for publicly held audit clients.
- Work with the state societies to closely monitor the "cascade effect," (i.e., further developments that may occur as a result of state or regulatory actions building on the Sarbanes-Oxley Act).
- Continue all its standard-setting work, including issuance of a new standard on fraud.
- Continue to encourage the Financial Accounting Standards Board to address the meaningfulness of the financial reporting model and related disclosures.
- Provide a toll-free number (866-265-1977) to answer questions from members and their firms about the new legislation. The number is available weekdays. No e-mail address was provided.
The e-mail also summarized the provisions that will most affect the accounting profession and described AICPA's efforts to lead the profession through what it described as a "turbulent environment." It explained, "We have walked a difficult road these past few months, determined to do the right thing by the public and by the honorable men and women in this profession. . . Unfortunately, the media, political and legislative fervor have frequently drowned out our simple and unshakeable message."
The AICPA takes credit for advocating several reforms that were incorporated into the Sarbanes-Oxley Act, most notably the creation of a new oversight board and the steering of the regulatory framework away from public oversight toward public participation.
Read AICPA's analysis of the Sarbanes-Oxley Act.