SEC Calls for Accounting Industry Self-Regulation

Sometimes, the most important aspect of the accounting profession is its image, and SEC chair Arthur Levitt strongly believes the image is tarnished and needs to be polished.

In the wake of the SEC's allegations that PricewaterhouseCoopers committed independence violations, Levitt believes the accounting profession's independence rules prohibiting auditors from owning stock in their client-companies needs to be reviewed. The need is there not only for the sake of the review, but to restore confidence in the profession with the public.

One way to ensure independence is to become self-regulatory, says Levitt, although he also said that the rules weren't written overnight and everyone connected to the profession, especially the Big 5 firms, should be very familiar with the dos and don'ts.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Upcoming CPE Webinars

Jul 16
Hand off work to others with finesse and success. Kristen Rampe, CPA will share how to ensure delegated work is properly handled from start to finish in this content-rich one hour webinar.
Jul 17
This webcast will cover the preparation of the statement of cash flows and focus on accounting and disclosure policies for other important issues described below.
Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.