May 2001

New York Resolution Submitted to AICPA Council

WHEREAS, at its October 2000 meeting, the AICPA Council directed that a business plan be prepared regarding the Institute’s project to launch a globally recognizable, interdisciplinary business credential (the “credential project”) and that additional research be conducted regarding the credential; and

WHEREAS, research on the credential project was independently conducted by the Institute and several state CPA Societies; and

WHEREAS, the Institute’s research indicated that while 35% of its membership were interested in the credential, the interest dropped to only 17% when members were informed of the credential’s requirements; and

WHEREAS, the independent state society research indicated a significant majority of their memberships opposed the credential in concept; and\

WHEREAS, international support for the credential project has eroded significantly since its introduction as indicated by the withdrawal of several of the Institutes of Chartered Accountants in other countries; and

WHEREAS, the delivery of the credential project business plan did not leave members of Council sufficient time to perform a due diligence review of the plan; and

WHEREAS, the credential project is causing confusion among state legislators currently deliberating the Uniform Accounting Act; and

WHEREAS, the credential project and other current, innovative AICPA initiatives have distracted the AICPA from its core purpose and brought into question its ability to act as a standard-setting body; and

WHEREAS, resources devoted to the credential project should have been directed to a marketing campaign that both better explains to the public the competencies of CPAs and the scope of services they provide and addresses issues of the declining recruitment to the profession.

NOW THEREFORE BE IT RESOLVED, that the AICPA Council hereby directs that AICPA officers, directors, and staff immediately cease all efforts in furtherance of the credential project and that any Council action on the credential project be postponed indefinitely.

RESOLVED FURTHER, that all resources currently proposed to be spent to support the credential project instead be, and they hereby are, redirected for a marketing, communication and education program to (1) improve awareness and perception of the CPA profession among the public in general and high school students in particular as to the range of services provided by CPAs and (2) increase the enrollment of students in accounting programs for the pursuit of the CPA certification.