The profession must work together to implement reforms and make new advances. How’s it doing?
by Rick Telberg
At Large in the AICPA Insider
In this Sarbanes-Oxley era, accounting professionals are all too often – and unnecessarily – finding themselves on opposite sides of the fence. All agree that restoring public confidence in the profession with diligence and integrity is of paramount importance. But, at the same time, public company auditors are asserting their responsibilities with vigor, and some public company executives themselves are chafing at the increased cost, scrutiny and paperwork today.
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Although the profession is caught in the middle, CPAs are clearly united in the necessity of their renewed diligence. But it’s taking time to work out the kinks. Pamela Kelty, a partner with the Soares, Sandall, Bernacchi & Petrovich accounting firm in Oxnard, Calif., says it’s only human nature that some people will commit fraud just to see if they can get away with it. “Our job is to not provide a spot for them to operate in,” she added.
The irony, of course, is that while the profession remains united in its core values, a little friction between the auditor and the audited is inevitable ? and maybe even healthy.
Ronald E. Roberts, a founding partner of the Roberts, Ritschke & Tyczkowski firm in Neenah, Wis., concurred that many CPAs, particularly in the largest firms, chose to break the rules, which has in turn forced the government to apply rules that include a heightened attention to ethics.
But ethics, moral values and basic integrity are not necessarily the responsibility of any single institution in particular.
As CPA Douglas Williams, a private industry chief financial officer in Addison, Tex., said, “Regulations will never take the place of honesty and integrity.”
The profession rises and falls on the competence and integrity of CPAs ? one CPA at a time.
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2 Responses to “CPAs: Seek to Heal SOX Rift”
Lynn Turner
The firms were all beat to death to lower their fees during the 90’s and of course the quality of audits went down as well. Now, while the firms are working hard and diligently to raise the level of the quality of their audits and understandably their fees, they are still being flogged. Unless the public wants to revert back to where we were, including a deja vu with the corporate frauds, we need to hear a lot less belly-aching, and people, including the politicians, need to get with the program.
[Editor’s Note: Lynn Turner is a former chief accountant at the SEC now with the proxy consulting firm of Glass Lewis.]
'Wesley'
.
I am an assistant controller for one operating group of a Fortune 500
company. The total corporation spent $2.0 million last year on SOX
compliance. My opinion is that SOX requirements have done little but add burdensome redundant paperwork and significant costs to an already fragile business environment. I agree with a quote I saw in you article, that nothing will replace management integrity. I would say that those who want to cheat, still could, they would just have to creatively document it!
Wesley
Hickory, N.C.
.