An update on Enron fallout.

• Position: News update - Brief Article

In our continuing effort to keep members informed of developments resulting from the fallout of Enron Corporation's bankruptcy, we are providing the following report.

Legislation

With more than 40 legislative proposals being debated in Congress stemming from Enron's collapse, AICPA Chair of the Board Jim Castellano told the Senate Banking Committee in Mar. that the value of any new public policy affecting the accounting profession must be assessed against a public interest test that asks four basic questions: (1) Will it help investors make informed investment decisions?, (2) Will it enhance audit quality and the quality of financial reporting?, (3) Will it help maintain confidence in the capital markets, our nation's financial reporting system and the accounting profession?, and (4) Will it be good for America's financial markets and economic growth?

Four initiatives that pass this four-point test, and therefore are supported by the AICPA, are ones to create a new private sector regulatory body for public company auditors, reform the financial reporting process to make it more timely and provide a broader "bandwidth of information," establish new rules for corporate governance, and support corporate truthfulness. The AICPA has pledged its support for these initiatives to Congress and the Securities and Exchange Commission.

CPA Message Ad

National print and radio advertisements began running in early Mar. to spread our message that CPAs continue to protect the public interest and serve the...