Tuesday, August 17, 2004
Accounting Today: "The storms caused by the ongoing accounting scandals have left a wide path of damage in their wakes.%0D%0A%0D%0AOne of the largest casualties has been the accounting profession%92s reputation %97 traditionally our largest asset. If you want to get us where it hurts%2C our reputation is a good place to start. Our national and professional organization%2C the American Institute of CPAs%2C knew it had a monumental problem that needed to be fixed. The unfavorable alternative would most likely be a %93quick fix%94 of the problem by those who do not really understand our industry.%0D%0A%0D%0AThe Sarbanes-Oxley Act that was passed by Congress would merely be the camel%92s nose pushing its way under the tent. More legislation would certainly follow as each new scandal %28Enron%2C WorldCom%2C Parmalat %97 take your pick%29 unfolds. We could hear the war drums banging out a steady beat. The auditing industry critics claimed that the accounting profession lost track of its charter %97 ascertaining that financial statements are in compliance with generally accepted accounting principles."