Fork in the Road

Fork in the Road
Making the Tough Decision Is the Hallmark of the CPA Profession

Continued from the Home Page

The recent convictions of Martha Stewart and her broker Peter Bacanovic tend to support the idea that the government and jurors, for that matter, are taking a closer look at the behaviors that defendants exhibit in the wake of investigations. In other words, a cover-up can become more serious than the alleged offense that led to an investigation in the first place.

Knowing what to do when a difficult situation comes across our path requires the ability to exercise good judgment. With the complexities of the current accounting environment, in which we are expected to be familiar with written and implied rules that govern our ethical behavior in the profession, knowing how to respond to the proverbial “pickle” is as important as knowing how the situation arose in the first place.

But the right response isn’t always as cut and dried as we would like for it to be. It’s during these moments that we must ask ourselves, “Where does our duty lie?”

This is where the Foundation for Accounting Education can play a crucial role for your practice.

The decisions that we, as CPAs, are sometimes forced to confront frequently necessitate a careful look at the professional guidance that exists. But interpreting the rules and knowing the right ethical response can be confusing, especially if a situation is particularly sensitive. The proper recourse can be all the more distressing for a sole practitioner who has to make a decision about a client without the benefit of any third-party consultation. At times, even the most established practices need outside help making the proper decisions.

The New York State Education Department requires all registered CPAs to take four credits in ethics during the three-year triennial registration period. FAE offers ethics courses that meet this requirement.

It is unfortunate that a state requirement may be necessary to ensure proper professional behavior. However, we should not view the requirement as a burden but, rather, as an opportunity. FAE’s ethics courses and the discussions that ensue from them refresh our familiarity with the rules and regulations, and remind us that we ultimately serve someone larger than our clients—we serve a public that has placed its trust in our profession. As part of the New York State Society of CPAs, the Foundation helps provide the tools for us to carry out that mission.

See for yourself. In addition to past events that have featured the likes of Public Company Accounting Oversight Board Chair William J. McDonough, who made his inaugural public address at a FAE conference, the Foundation holds numerous events and courses that sharpen your professional skills and strengthen your ability to make the right decisions. For example, in April the NYSSCPA Accounting and Auditing Oversight Committee will present the Section 404 Conference that will provide “practical guidance and pitfalls to avoid in the new era of Section 404 of the Sarbanes-Oxley Act.”

Over the last three years, our image as the public’s “trusted professional” has been tested. As a profession, we must do everything in our power to maintain the stature that we have worked so hard to earn, and this obviously includes adhering to the highest ethical standards. This responsibility is great, and occasionally made even more difficult by conflicting interests, but it is one that we must always be willing to bear. Our most important client, the public, expects nothing less. Neither should we.