Accounting Profession Transformation Challenges

• The collapse of Enron, Arthur Andersen and other recent events in the private sector have served to increase the visibility of and concerns relating to a range of issues, including:

  • The effectiveness of current regulatory, oversight and enforcement activities.
  • The adequacy of the current accounting and reporting model
  • The independence and effectiveness of auditors
  • The adequacy of existing pension rules
  • The nature and reasonableness of executive compensation
  • The roles of other key players (e.g., management, boards, analysts, attorneys, investment advisors)
  • The appropriateness of current corporate governance structures

• Definitive actions are needed by a range of parties to address legitimate concerns, better protect the public interest, and restore investor confidence (e.g., Congress, stock exchanges, management, boards, CPAs)

• Government has both the need and the opportunity to lead by example in some important areas