June 1999 Issue

Executive Committee Recognizes AICPA's "Substantial Progress"

By James A. Woehlke, CPA

The NYSSCPA Executive Committee voted at its April 21 meeting to recognize that the AICPA was making "substantial progress" in revising its standard-setting process to include engagement-based standards. This Executive Committee finding resulted from a request by the board of directors to establish the Society's final lobbying stance on the issue of "internal use only" financial statements and other CPA services.

In February the NYSSCPA board of directors decided to make its position on whether the New York version of the Uniform Accountancy Act should specifically make internal use only financial statements an unregulated service contingent upon the AICPA's making substantial progress toward revising its regulatory approach to be one of engagement-based standards before May 1.

In March the AICPA held regional council meetings, most of which were attended by then NYSSCPA President George T. Foundotos. (See "Society Encourages Flexibility in Professional Standards" in the April issue of The Trusted Professional.) At these meetings, AICPA Vice President Arleen Thomas presented a white paper on internal use only statements, a copy of which can be obtained from www.nysscpa.org.

The April AICPA board of directors' discussion of the issue resulted in the matter being placed on the May agenda of the full AICPA Council. It was at this juncture that the NYSSCPA Executive Committee decided that the Institute had made substantial progress.

Following the April NYSSCPA Executive Committee meeting, the full AICPA Council met and agreed that the professional standards pertaining to internal use only statements should be reviewed and likely revised. The matter was then referred to the Accounting and Review Services Committee for further consideration.