Positive Developments at the AICPA

Positive Developments at the AICPA

Continued from the Home Page

The past few years have been a tough time for our profession and for the AICPA. Many have criticized the AICPA leadership for having a dictatorial, top-down approach to conducting its activities; for being out of touch with its members, and for being too slow to react to the crisis in investor confidence caused by some prominent audit and business failures. We have called for the AICPA to return to its roots as a professional association.

But the last 12 months, at least in my judgment, have been different. A year ago at the AICPA’s annual meeting, then Chairman William F. Ezzell pledged to make changes. He pledged to go anywhere to listen to our members and solicit their input. I think he delivered.

Ezzell established a task force to examine the role and responsibilities of the AICPA Council. No current AICPA board members were on the task force. As a member of that task force, I can tell you that in the course of our work, the AICPA board and the senior management have exerted zero influence. Many of the task force’s recommendations were designed to help the AICPA Council do a better job of staying connected with the membership. The recommendations were discussed and debated by the Council last month in New Orleans. This year’s chairman, Scott Voynich, has asked the task force to consider the comments made by Council members and to issue a final report of recommended changes. Again, without influence from the board or senior management.

In the past year, the AICPA Council recommended improvements to the member discipline process, which were overwhelmingly approved by the membership.

The AICPA board encouraged Council and member debate on the future of the Specialty Credential program by providing objective information and listening to its members. The result is that the credentials are to be continued with renewed support.
Although the Public Company Accounting Oversight Board has taken over auditing standard setting for Securities and Exchange Commission registrants, I believe the AICPA can continue to have an important role by providing thoughtful, objective comments on proposed PCAOB standards. This role is critical not only for public companies, but also because the work of the PCAOB will undoubtedly influence standard setting for private companies.

The AICPA has recently refocused on its mission as a professional association by replacing the SEC Practice Section with a Center for Public Company Audit Firms, a voluntary membership center that would support—via education, communication, representation and other means—member firms that practice or are interested in practicing before the SEC and the PCAOB.

At the same time, the AICPA improved the effectiveness of the Accounting Standards Executive Committee and the Auditing Standards Board by adding non-AICPA members from the user, regulatory and public communities. The AICPA went further by establishing two audit quality centers, one for government audits and the other for employee benefit plan audits.

These activities—listening to the membership, working with our regulators and helping AICPA members do better audits—are exactly what a professional association of CPAs should be doing. I think these are very positive changes, because our profession needs a strong, member-driven professional association. Keep up the good work.

By the time you read this column, it will be the middle of the holiday season. I love this time of year. I love the lights and decorations. I love the frenzied activity and the holiday parties with friends and colleagues. But most of all, I love the opportunity to spend time with my family, to reflect on the past year and look forward to the year ahead. I hope all of you get a chance to relax, reflect and enjoy your family and friends. From my family to yours: best wishes for happiness and peace!