Society Takes Lead Role in Representing CPAs to the Media

By Lois Whitehead

The unfolding Enron story has put the New York State Society of CPAs square in the media crosshairs. From the moment the story became front-page news late last year, Society spokespeople have responded to over 100 media inquiries regarding the bankruptcy and its implications for the accounting profession

The Society strengthened and expanded its press relations during the XYZ initiative and became known for its outspoken stance. Reporters consequently have sought out the Society for background and comments on the Enron bankruptcy and related events.

In addition, when members of the NYSSCPA testified at a state senate committee hearing on Feb. 6, reporters recognized the Society as a source of authoritative commentary about Enron. Society staff sent copies of members’ testimony to a slew of media outfits just before the hearing, with an invitation for further queries that brought an onslaught of reporters seeking interviews with members.

Their testimony drew so much attention that witnesses Allen L. Fetterman, chairman of the Audit Committee; Vincent J. Love, a member of the board of directors and the Financial Accounting Standards Board Committee; and Marilyn A. Pendergast, former NYSSCPA president and current chair of the Ethics Committee of the International Federation of Accountants, all became Society spokespeople. Kevin J. McCoy and Katharine K. Doran, who testified at a second hearing on Feb. 26, were later added to this list.

Bloomberg News, Accounting Today, Practical Accountant, Gannett and Reuters were among the two dozen outlets to carry interviews and commentary from NYSSCPA experts in the ensuing days.

Testimony Sparks Media Interest

Society testimony attracted press attention for its substance as witnesses recommended specific changes in state regulation, disciplinary systems, enforcement and peer review. They expertly discussed the relationship between auditing and consulting services; reconstitution of the New York State Board for Public Accountancy with more power, independence, and stature and resources to protect the public; registering and regulating all CPAs with discipline for professional conduct breaches and continuing professional education, including the need for ethics education; and elevating public confidence in financial reporting.

The testimony triggered interest among reporters, prompting some to look into the differences between state and federal regulation, a topic that they had yet to explore. Reporters also started to look to the Society to educate them in accounting matters.

Educating Media

News organizations recognized the Society as a reliable and objective source of instruction for reporters who often had little experience covering the accounting profession. The Society saw attendance triple at its regular basic, intermediate and advanced accounting seminars for journalists.

Considerable attention has been given to financial statements as they have come into question in other cases, such as that of Global Crossing. Consequently, Philip Wolitzer, a member of the Society’s Public Relations Committee and board of directors who currently leads the seminars, added “Understanding Financial Statements” to the seminar syllabus, attracting even more interest from reporters eager to gain in-depth knowledge about interpreting financial statements. With Wolitzer’s help, we have presented these sessions at the Society office and at CNN, the Associated Press and The New York Post.

Before the Boards

Staff also arranged meetings between Society representatives and the editorial boards of various publications, which have become one of the more effective ways to communicate with the press.

At the time of this writing, Society representatives have met with editorial boards at Gannett, Crain’s New York Business, Newsday, The Buffalo News and The Democrat & Chronicle, which resulted in more editorial pieces and articles by Crain’s and Gannett.

Executive Director Lou Grumet attended these meetings with chapter representatives including Fetterman, who visited Crain’s; George T. Foundotos, who met with Newsday; Raymond M. Nowicki, who participated in the Buffalo News meeting, and P. Gerard Sokolski, who met with the Democrat & Chronicle in Rochester.

Coverage has extended—through the help of our CPA experts— to include The New York Times, The Wall Street Journal, The Daily News, The Washington Post, Bloomberg Television, CBS Market Watch, CNN-fn, The New York Post, CNBC and Reuters. Additionally, the Albany Times Union ran a Society-authored op-ed piece.

The Society, through The Trusted Professional’s Media Relations column, has begun to provide some guidance for practitioners who want to communicate with local editors and publications via letters to the editor.