By Steven E. Sacks
The supposed purpose behind a CPA firm creating a board is not to micromanage, design a company logo or address human resource issues. Neither is its role to sit around and smoke Cohiba Esplendido cigars and sip Louis XIII de Remy Martin Grande cognac. This glad-handing, back-slapping culture led to the financial breakdowns in the early 2000s and is possibly still happening today.
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Why would a firm create a board? In theory, it is designed to build and preserve a firm’s prosperity and longevity, in the same vein as a company board. Each board member should have a thorough handle on the profession and the industries that the firm serves. The board members should understand trends, the competitive challenges, and the effectiveness or lack thereof regarding the firm’s structure and operations.