**Editor's note: Mr. Israeloff did not testify, but submitted the following outline.

1. Scope of Practice

A. Appropriate to regulate only audit, review, compilation and attest services.

B. CPAs offer other services (tax, consulting, etc.) that are offered by non-CPAs, who are not regulated; CPAs would be at a competitive disadvantage if their offerings were regulated.

C. Government regulation should only extend to services where there is a strong public interest to do so. Only those services covered by A8600 rise to that level.

D. CPA profession's education and examination requirements basically cover auditing and accounting subjects, not consulting areas.

II. Non CPA Ownership

A. CPA firms must attract non-CPAs to ownership ranks in order to offer the range of services required in today's complex economic environment.

B. Glass-Steagall just repealed. CPA firms must have talent to deal with overlapping disciplines.

C. 51 per cent ownership assures CPA control.

D. Peer review requirement upholds application of professional standards.

E. New York is the center of the financial world. Our CPA firms need to offer a range of services, many by non-CPAs, to remain as financial leaders.

Ill. Commissions

A. A8600 would incorporate national standard promulgated by AICPA.

B. AICPA developed these rules to comply with Justice Department's anti-trust investigation.

C. Disclosure of commission to clients assures that clients could always make an informed decision about their relationship with their CPA.