September 2000

July was a busy month for the leadership and the staff of the New York State Society of Certified Public Accountants.

On July 12, the first Senate meeting since 1984 was held. The month of July also hosted testimony before the Public Oversight Board’s Panel on Audit Effectiveness and the Leadership Conference at the Hudson Valley Resort and Conference Center in Kerhonkson, N.Y..

Before updating you on these events, I would like to call your attention to an organization many of you may not have heard about. The New York State Society of Certified Public Accountants has a 501(c)(3) organization named the "New York State Society of CPAs Benevolent Fund." This organization was created in 1954 for the purpose of providing aid to members and their immediate families in time of need. The organization currently has a fund balance of approximately $330,000 available for assistance to those who qualify. If you are aware of any retired or disabled CPAs or families of deceased CPAs who may benefit from assistance of this type, please make them aware of the Benevolent Fund. Additional information is available on the State Society’s website at nysscpa.org. We will provide appropriate information in The Trusted Professional, and encourage our members to be on the lookout for those in need.

On July 10 and 11, the Public Oversight Board Panel on Audit Effectiveness held public hearings in New York City. The panel issued an Exposure Draft and invited comments from the public. We were the last to present our comments on July 11. Testimony was heard from a variety of sources, including Arthur Levitt, Chairman of the SEC, and representatives from the New York State, Texas, and Washington State Boards of Accountancy, as well as representatives from the "Big 5". Principal drafters of the Society’s comments were William Stocker, Julian Jacoby, Neil Hitzig, Robert Waxman, and Vincent Love. I wish to personally thank these individuals for the time and effort they expended to prepare the remarks, as well as the work of the Accounting and Auditing General Committee, the Auditing Standards and Procedures Committee, and the SEC Practice Committee. Our comments may be read on the State Society’s website. The Panel’s final recommendations could have a significant impact on CPAs who provide attest services. If you are interested in reading the Panel’s full report, it may be downloaded from their website. There is a hot link on the State Society’s home page that will direct you to the download.

The Senate Committee meeting that convened on Wednesday, July 12, was a success in my opinion. The purpose of the Senate is to seek the wisdom of the top leadership of the Society on matters of importance to the profession. It is not an action body; it’s a deliberative body. Approximately 40 members attended the meeting. The entire morning was spent discussing the XYZ project. The discussion opened with an executive summary of the AICPA’s new credential proposal. Thanks to the AICPA and Bob Elliott for allowing us to use their slide presentation. The XYZ credential project was explained in the May issue of The Trusted Professional ("Society Raises Questions about Proposed Global Credential"). The AICPA leadership plans to bring the XYZ project to a vote at the Fall AICPA Council Meeting. If the project is passed, it will go to the full membership of the AICPA for a vote some time in spring of 2001. At this time, because the AICPA is in the early stages of formulating the project, we do not have a lot of specific information to provide. However, I strongly recommend that you follow the issue in this newspaper, learn as much as you can about the credential and be prepared to vote on it intelligently next spring.

After lunch, the Senate agenda continued with a discussion about multidisciplinary practice. Lou Grumet discussed the idea of CPAs and other professions practicing jointly. He spoke about the position of the American Bar Association Commission on Multidisciplinary Practice and the Association of the Bar of the City of New York’s Statement on Multidisciplinary Practice. The discussion then turned to the status of the UAA, its relevancy and what we as a Society should be doing looking forward. The Senate meeting ended with a brief update on the AICPA vertical portal as it affects the individual CPA.

On Sunday, July 23, chapter officers, state committee chairs, officers of society, and staff met for the 2000 Leadership Forum. We had a very interesting and informative brainstorming session with the young practitioners. The purpose of that session was to get input on how we can attract and retain young members in the profession. After a general opening session in which all attendees participated, the rest of the Forum was divided into two tracks: one for the Chapters and one for the Committee Chairs. Workshops for the Chapters provided information on how to run effective meetings, information necessary to carry out programs for the year, and question and answer sessions to present the opportunity for all involved to get specific, direct answers to their questions. the committees discussed committee action plans, the Society’s website and The Trusted Professional, and also spent considerable time discussing the concept of the XYZ credential.

I encourage each and every one of you to continue to contact me by e-mail or any other convenient method to pass along your suggestions and concerns.

president@nysscpa.org