The CPAPAC Needs Your Help

The CPAPAC Needs Your Help
Contributions Are Essential to Meaningful Accounting Reform

Continued from the Home Page

The prospects for meaningful and effective accounting reform legislation have never been better, and may not be as good for some time to come. Last June, the state Senate unanimously passed an accounting reform bill. This is the first time in more than 40 years that either house of our state legislature has passed major accounting reform legislation. Our profession has changed considerably in four decades, and we need legislation that keeps up with the times. The Society was a major supporter of the bill and worked hard with Sen. Kenneth LaValle as well as several other lawmakers to help craft it.

This legislation is good for the public and good for the profession. Through it, the public will know that a CPA is accountable for doing a competent job in all areas of our practice, not just the attest function. If we are negligent or don’t follow established standards of practice, we will potentially be subject to discipline and fines. The public will know that anyone who is a CPA in New York will be required to take continuing professional education to retain his or her license. For CPAs in public practice who perform attest work, peer reviews will be required. These rules will apply to CPA firms as well as individual CPAs.

The profession will benefit because more of the work we perform (tax work, for example) will qualify as experience to become a CPA. Those who sign audit opinions or supervise audits will still need specialized experience.

If the legislation is passed, New York accountancy laws will be more in line with the laws of other states. This will be helpful for professionals that have clients or work in multiple states. It clarifies when CPAs can accept commissions and referral fees.

The legislation is also important for what’s not there. For good reasons, it does not extend Sarbanes-Oxley-type rules (such as limiting the services we can provide) to private companies. The business community and our profession strongly support this reasoned approach to reform.

Our goal for 2004 is to get into law the accounting reform legislation that contains these provisions. We are working with members of our profession, the State Education Department and our legislators to try and make it happen.

That is why we need a strong political action committee. CPAPAC is a nonpartisan organization that contributes to the election campaign committees of officeholders and candidates who can help the public and our profession. These contributions are an important part of our efforts to get our ideas for reform to people who will listen. A fair hearing is all we ask.

If you have ever considered making or increasing your contribution to CPAPAC, now is the time to do it. For many reasons, we believe that 2004 is our best chance to achieve meaningful and effective reform. If nothing happens this year, it may be years before we get another real opportunity. So please, please see the form on page 14 and send in your contributions.

If you have any questions or would like additional information on the proposed legislation, contact Dennis O’Leary, the Society’s legislative counsel, at 212-719-8418 or doleary@nysscpa.org. Thanks for reading this, and thanks for your consideration and support.