Standing Up for What We Stand For: The Institute's New Chairman Urges CPAs to Live by Their Core Values
It's a great honor to represent the members of this distinguished profession. As you know, during the past year the Institute, under the leadership of President and CEO Barry C. Melancon and Past Chairman James G. Castellano, launched many initiatives. Some were responses to the crisis thrust upon us while others were introduced because of their importance to the public interest and to our profession. I will support all these programs and strive to implement them quickly and efficiently. But because we already face substantial challenges, it would be impractical for me to propose further initiatives. Instead, we must devote our resources to developing the right response to existing priorities. For example, we all--including corporate America--will feel the effects of the Sarbanes-Oxley Act of 2002. Accordingly, I will work with great vigor to prevent the act's provisions from inappropriately "cascading" to the state level and applying to all areas and practitioners that serve non-public companies. I also will remain a champion of much greater consistency in state-based regulation. For both CPAs and the clients and employers we serve, it makes sense to have the CPA certificate stand for the same set of qualifications--and for us to abide by the same regulations--whether we live in Kentucky, California or another state. But words alone won't drive the change we surely need. So, as a leader I will promote action and achievement--determination, not defensiveness. And together we will move forward and not relive the past. We'll focus on execution, engagement and getting it right--now. GETTING BACK ON TRACK Like it or not, our profession has taken some hits and we have serious work to do. To accomplish our initiatives and move forward, this year must be a time of restoration on three fronts: * Restoring belief in ourselves and in connection with our core values. * Restoring our reputation among those we are committed to serving. * Restoring our sense of shared purpose in the profession and in the AICPA. First, let's get something straight. I'm with a Big Four firm and am an auditor by training. In addition, I've done considerable lobbying on behalf of my firm and the profession for fair and appropriate legislative and regulatory oversight. I realize many CPAs think their problems stem from the large firms. But even I--with my big-firm background--am appalled by the allegations leveled at our profession. In fact, because much of the heat has been focused on the large firms, I've taken those charges personally. Still, I'm proud to be a CPA. Like you, I think those responsible for accounting and auditing irregularities should answer for their mistakes, and they will. Like you, I say there's no excuse for failing to live up to our profession's standards. But at the same time, we, as members of that profession, have a choice: We can remain stuck in place and feel bad about what has happened. Or we can move ahead and drive the process of restoration. To do so, however, we first must be truly in touch with who we are and what we stand for. Let me explain. Do you remember how good you felt when you got your first job offer? "I'm going to be a CPA!" you said. And remember how proud you were when you passed the CPA exam--the toughest professional entrance test--and what it felt like the first time someone you admired in the profession recognized you as a peer. For some of you that person was a teacher, as was the case for me. Those of you who are educators may not fully realize the very deep and lasting impression you make on your students. When I went to the University of North Carolina, Julius Terrell was the toughest and most terrifying professor in the entire accounting program. No matter what, he gave only two As per class. One day, soon after I passed the CPA exam, he called to congratulate me and asked about my career plans. …