Chair's corner.

• Author: Ezzell, William F.
• Position: American Institute of Certified Public Accountants

For many of our members, this issue of The CPA Letter will arrive during one of the busiest times of the year. As you pause for a few minutes to catch up on recent events, I urge you to also take a moment to make sure that you are truly comfortable with each of those difficult decisions that you are dealing with this busy season. Whether working within the management of a company or providing tax, accounting or auditing services to clients, the focus on our profession to do the right thing has never been more important.

The AICPA staff and volunteer members of many committees have been extremely busy reviewing and commenting on the many proposals that the Securities and Exchange Commission put forth to implement the provisions of the Sarbanes-Oxley Act. These regulations will lead to significant changes in the public company audit arena and by the time you receive this newsletter, many of the proposals will have been finalized. Just as we worked with the SEC staff in commenting on the proposals, we will continue to work closely with the SEC, the Public Company Accounting Oversight Board and other interested parties to make sure that implementation of the new regulations will have a positive impact on audit quality and thereby enhance the public's confidence in financial reporting.

Early in the process of working with the implications of the Sarbanes Oxley Act and its regulations, we recognized that there was a potential for greater divergence in the standards for auditing public companies and non-public companies. Regardless of who sets audit standards, the PCAOB may promulgate certain actions for audits of public companies. Additionally, it is possible that some independence roles should or could become applicable for audits of public companies only. As the Financial Accounting Standards Board refocuses on its role post Sarbanes-Oxley, some have questioned whether the needs of non-public companies will receive adequate consideration in the new environment, particularly in light of the potential for harmonization of international standards.

The basic topics are not new and have been debated from time to time in this profession. To better understand member views on these issues in light of the current environment, we devoted time at last Oct.'s Council meeting to exploring whether or not we should look seriously at the need for dual standards for audit, independence or accounting. Following the...