Accounting and Financial Reform Proposals by themachine

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									Accounting and Financial Reform Proposals
In the aftermath of the Enron bankruptcy, Congress, the Securities and Exchange Commission (SEC), and others have begun considering various regulatory changes that would affect the accounting profession. The leadership of TSCPA recognizes the potential implications, both positive and negative, of each of the proposed changes and is seeking input and opinions from the membership. Your input will be valuable in formalizing TSCPA’s position on these important issues as we prepare for the next legislative session. Please indicate your level of support for the following proposed reforms: 1. Ban on ALL auditors from providing the following non-audit services to an audit client: a. Information technology consulting
Strongly Support Support Support Support Support Unsure Unsure Unsure Unsure Oppose Oppose Oppose Oppose Strongly Oppose Strongly Oppose Strongly Oppose Strongly Oppose

b. Internal audit services
Strongly Support Strongly Support Strongly Support

c. All non-audit services, other than tax services d. All non-audit services, including tax services

2. Ban on auditors of public companies from providing the following non-audit services to an audit client: a. Information technology consulting
Strongly Support Support Support Support Support Unsure Unsure Unsure Unsure Oppose Oppose Oppose Oppose Strongly Oppose Strongly Oppose Strongly Oppose Strongly Oppose

b. Internal audit services
Strongly Support Strongly Support Strongly Support

c. All non-audit services, other than tax services d. All non-audit services, including tax services

3.

Establish an independent regulatory organization, at the federal level, to monitor auditors of public companies. This organization’s two primary functions would be: 1) the discipline of auditors, and 2) audit quality review and monitoring. a. This organization should be primarily comprised of CPAs:
Strongly Support Strongly Support Support Support Unsure Unsure Oppose Oppose Strongly Oppose Strongly Oppose

b. This organization should be primarily comprised of non-CPAs:

4. Require a mandatory five to seven-year auditor rotation for: a. Auditors of publicly held companies
Strongly Support Support Support Unsure Unsure Oppose Oppose Strongly Oppose Strongly Oppose

b. All auditors
Strongly Support

5. Prohibit auditors from accepting senior-level employment for a two to three year period with companies they have audited: a. Auditors of publicly held companies
Strongly Support Support Support Unsure Unsure Oppose Oppose Strongly Oppose Strongly Oppose

b. All auditors
Strongly Support

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Accounting and Financial Reform Proposals - Page 2 6. Make it a crime for audit clients to lie to or mislead auditors.
Strongly Support Support Unsure Oppose Strongly Oppose

7.

Give the SEC more direct oversight in the development of Generally Accepted Auditing Standards (GAAS).
Strongly Support Support Unsure Oppose Strongly Oppose

8.

Give the SEC more direct oversight into the development of Generally Accepted Accounting Principles (GAAP).
Strongly Support Support Unsure Oppose Strongly Oppose

9.

Require management representations and auditor opinion on internal control reporting. a. Auditors of publicly held companies
Strongly Support Support Support Unsure Unsure Oppose Oppose Strongly Oppose Strongly Oppose

b. All auditors
Strongly Support

10. Require audit committees of publicly held companies to hire and fire auditors.
Strongly Support Support Unsure Oppose Strongly Oppose

11. Require accounting/financial qualifications for audit committee members of publicly held companies.
Strongly Support Support Unsure Oppose Strongly Oppose

12. Do you have any comments? If so, please type them in the following text box: For grouping purposes, please indicate the following information about you and your firm: D-1. Type of CPA (check all that apply):
Public Practice (National Firm) Public Practice (Regional Firm) Public Practice (Local firm - more than 10 CPAs) Public Practice (1-10 CPAs) Industry (Public Company) Industry (Private Company) Government Education Other Retired/Unemployed

D-2. If you are in Public Practice, do you (or anyone in your firm) perform audits?
Yes No

If “Yes,” do you (or anyone in your firm) audit public companies?
Yes No

D-3. Number of years certified as a CPA:
Not certified 6 to 10 years certified Certified more than 30 years 0 to 2 years certified 11 to 20 years certified 3 to 5 years certified 21 to 30 years certified

D-4. Which TSCPA Chapter do you belong to?

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