First of all, I'd like to introduce myself. I am Michael Hand, Controller of Sotheby's North and South America where I manage a team of 22 finance professionals. Our responsibilities include accounting processing, systems support, technical accounting guidance, and planning, forecasting and analysis of a $200MM business. I have been at Sotheby's for approximately 1 1/2 years.

Prior to Sotheby's, I worked at Price Waterhouse for 3 years, and before that, (the now defunct) General Foods for 6 years, and the Pepsi-Cola Company for I I years. At General Foods and Pepsi, I had responsibility for hiring, training and developing scores of accounting and finance professionals - departments which ranged in sizes from about 5 to 40.

I think you'll see soon why I point this out.

I have been asked by the NYSSCPA to testify in support of Assembly bill number A8600. And, I do so very willingly and proudly. I feel that my profession has offered me great opportunities and 1, therefore, am more than happy to be supportive of it's efforts today.

I must tell you that having been away from Public Practice for almost 20 years, I am a bit neutral towards certain of the Provisions proposed. However, I do feel very strongly that no changes should be made which would, even slightly, diminish the excellent reputation that CPA's enjoy. It has always been my experience that CPA's are perceived by the general public to have 3 primary qualities:

1) they are seen to be knowledgeable in a broad range of financial matters,

2) CPA's are fair minded, and

3) they always demonstrate high integrity.

I think the first is somewhat of a misconception in some - but not all - cases, but the 2nd and 3rd qualities (fairness and high integrity) I think, are so accurate and are so important. And, honestly, I have never worked with a CPA who was not fair and who did not have a high standard of integrity.

I do not know how many times I have heard someone say," Oh! You're a CPA!?"

My point here is that there is an overriding perception in the general public's eyes that CPA's maintain high professional and personal standards. This perception - this trustworthiness - must not be harmed, even slightly, with the proposed changes.

Let's talk about just a couple of Provisions:

Licensure Requirements (both education and experience requirements)

I am in favor of the change in the Licensure Requirements. When I graduated from Pace University with both a BBA and an MBA, I did have 150 hours of schooling with a focus in Accounting. While my tenure at Price Waterhouse was exciting and challenging, looking back now, I did not learn how to be a better accountant during that 2 nd year. Additionally, that 2 nd year at Price Waterhouse was not where I learned to be fair-minded and open minded. And that certainly was not where I became a professional with integrity.

Where did I pick up those qualities? I have had my most rewarding and challenging accounting experiences later on in Industry at Pepsi and at General Foods; I learned to be open minded to business options and alternative perspectives in college at Pace University, and in Public at Price Waterhouse, and in Industry again at Pepsi, General Foods and now at Sotheby's; and, I have my parents to thank for my high level of integrity and my wanting to do what's right!

I fully agree that the experience should not have to be in Public Accounting. While I do not think that I year in Pepsi's Payroll Department, or I year in the Philip Morris Accounts Payable Department should be considered a "qualifying experience", I do know first hand that private industry can provide very challenging and professionally rewarding experiences to young folks right out of school. I am certain of this!

Pepsico Corporate Audit experience should qualify an individual. Technical accounting research and interpretation at Sotheby's Corporate Accounting Department should qualify an individual. Dealing with consolidation issues, or working on Philip Morris acquisition accounting issues should be deemed "qualifying experience".

I support these Licensure changes for two reasons: 1) based on my own personal experiences, I know that one or two years of Public Accounting experience is not the only source of great accounting training, and 2) selfishly, as a frequent hiring manager of finance professionals - sometimes entry level - I have often been shut out of being able to hire the brightest college graduates. Why? They all seem to think (as did 120 something years ago) that Public is the only way to go. Selfishly, I believe the rules need to change.

Mandatory CPE

I agree with the proposal to require continuing education of at least 120 hours during a 3 year period with a minimum of 20 per year. Broadening the definition to "any program contributing to the growth in the professional knowledge and professional competence of the licensee" is so appropriate in today's world of broad financial contexts. (As an aside, I believe I read in a recent Journal of Accountancy article that retired and inactive CPA's may seek exemption from the CPE requirements. I believe that makes sense. We should not be requiring those who no longer practice to comply with continuing education requirements.)

Maintaining your professional competence and continually brushing up on old skills, and learning new skills is so critical if a CPA is to maintain his / her valuable credentials. In a financial world where rules change, financial techniques and services change, and even companies are born almost weekly, a true accounting professional, a true CPA, must stay fresh. Always.

The bottom line of all of this is, based upon my experiences as a CPA, as a finance professional, and as an employer trying to hire the best and the brightest, is threefold:

1) CPA's are a rare breed. They are a valued, trusted and integral part of the broad economic landscape,

2) It is absolutely critical to the profession to maintain that trust in the public's eyes, and

3) Young, bright accounting graduates should be given an opportunity to become licensed by picking up some excellent training which is already available in Industry, Government or Academia.

Thank you for your time.