September 2000

NYSSCPA Senate Discusses Major Issues Impacting Profession
By Wayne Whalen

The Senate, as stated in the Society’s bylaws, consists of all the officers and directors of the Society, all chapter presidents of the Society, all members of the Society who are members of the Council of the American Institute of Certified Public Accountants, and all past presidents of the Society.

NYSSCPA President P. Gerard Sokolski opened the meeting with a discussion of the “XYZ credential,” a working title for the global designation the AICPA will propose to its leadership in October. In late AUgust the AICPS circulated the term "cognitor" as the actual title members of the proposed global profession would use in their title.

The designation would enable professionals from a wide range of disciplines to build on their ethical standards, traditional skills, and expertise, providing a broader range of globally relevant services to clients, customers, and employers. The discussion included a PowerPoint presentation delivered at an earlier event by AICPA Chair Robert K. Elliott.

Members opposed to the creation of an XYZ certification voiced their opinions during the discussion. “Now is the time to develop opposition,” said past Society president Robert L. Israeloff.

Israeloff believes that the XYZ project grew out of the AICPA’s concerns over dwindling membership rather than a need for a new global certificate.

Eli Mason, another opponent and past president, said he feared that the designation would eventually be passed only because of what he referred to as ‘AICPA President Barry Melancon's public relations ability.’

In August the AICPA launched a vertical Internet portal at www.cpa2biz.com, that expects to provide CPAs with a number of services over the Internet, including continuing professional education and financial services.

Mason had already pointed out in Accounting Today that Melancon would earn several million dollars in stock as a result of his involvement in CPA2biz.com.

Sokolski provided background information on CPA2biz.com, which will be the product of a joint effort between the AICPA and state societies, emphasizing that the deal has already been completed and the website will soon be available.

NYSSCPA Executive Director Louis Grumet addressed the issue of whether a global credential is actually needed. He asked the senate to focus on the issues that must be resolved before they review the proposal.

Ensuing discussions and a straw poll revealed that two-thirds of the senate members present were opposed to the global credential (for a full listing of senate members present, see the sidebar). The senate agreed that the CPA designation should not become a secondary credential.

In addressing the topic of MDP, Grumet asked what the profession should be and what parameters should be included when examining MDPs. Grumet asked the senate to consider limitations, disclosure, and who should actually be in charge.

In addition, Grumet provided a uniform accountancy act status report, mentioning the possibility that the bills will have different congressional sponsors in the next legislative season (for more on the status of the Society-supported legislation, S.4402 and A. 8600, see the August Trusted Professional).

After much debate, the meeting adjourned on issues that will shape the future of the profession. The next several months will be a pivotal time not only for the Society, but for the accounting profession.

According to NYSSCPA bylaws, the senate is to serve as a deliberative body responsible for discussing current issues and basic philosophies confronting the profession. In its deliberations, the senate must give due consideration to all areas of approach in dealing with the problems and issues confronting the profession. The Society president presides over the senate meeting.