Chair's corner.

• Author: Ezzell, William F.

In last month's column, I talked about the agenda for my term being about reality. After a difficult year, we have some very serious work to do. Reforms such as the Sarbanes-Oxley Act and the rules and regulations that will be forthcoming from the Securities and Exchange Commission and the new Public Company Accounting Oversight Board are not the end of the story--they are just the beginning. Over the coming months, this profession will continue to be under the watchful eye of the media as we participate in the discourse necessary to shape the implementation of the Act. Having the media closely observe our actions is just fine because it will enable us to demonstrate that we, as a profession, are as concerned with protecting the public in the delivery of audit services as any other stakeholder.

The PCAOB has been much in the news as this issue of The CPA Letter goes to press. We have repeatedly stated that we stand ready to work with the newly appointed members of the PCAOB, whoever they might be, to increase confidence in the capital markets and our role in attesting to investor information. There has been much turmoil in the process of selecting qualified members to serve on the PCAOB. The accounting profession deliberately did not get involved in the selection process. From the beginning, the AICPA stated its intent not to speak out in favor of or against any person reported to be under consideration by the SEC for a position on the board. To this day, we continue not to enter into useless speculation about who would or would not be an appropriate member. That decision was for others to make.

Shortly before writing this column, the current chairman of the SEC, Harvey Pitt, announced his resignation from the SEC. Pitt entered the office with a deep understanding of our profession, its complexities, and its pivotal role in supporting the capital markets. We hope that whoever his successor may be, he or she will bring in-depth knowledge of accounting and the issues that must be addressed to restore confidence in both auditing and the capital markets. Modernized financial reporting, and transparent and continuous auditing are fundamental objectives that must be on the SEC's and the profession's agenda.

Change is necessary, and we intend to be full partners in driving meaningful and purposeful change. We will give the PCAOB our dedicated assistance and support in all its aspects and dimension. We will work hard to expedite changes in...