PCPS update.

• Position: Private Companies Practice Section - Technical Issues Committee

Answers to Sarbanes-Oxley Questions Available on the Web

On August 26 and 28, 2002, the AICPA and PCPS hosted a conference call for CPA firms across the country to hear a panel of speakers address the newly implemented Sarbanes-Oxley legislation. Over 125 practitioners listened in on the call and participated in the question and answer period that followed. If you weren't able to participate, you can now access the real audio version of the call or the transcript at http://www.pcps.org/download/ SarbanesSummaryofQandA8260 2-final2.pdf. Here's a sample of the dialogue:

Q: What is the cascade effect in relation to the Sarbanes-Oxley act? Might state legislators take it upon themselves to make changes to state law as it relates to accounting licensing and licensing of CPAs within a particular state? Is this how the cascade effect will affect the small and medium firms that do not provide services to the public companies?

A: Yes. There are any number of states who are, either in their legislature or in their top elected officials, talking about making changes in the licensing laws and in the laws governing the state boards of accountancy that could even include the Board of Accountancy adopting the independence rules that are currently in place under the Sarbanes-Oxley Act and applying these rules to any CPA who conducts an audit in that state, whether or not they serve public clients.

Stephen McEachern Takes Over as Chair of Technical Issues Committee

In October, Stephen McEachern, managing shareholder of Fitts, Roberts & Co., P.C. succeeded Candace Wright, CPA and auditor director of Postlethwaite & Netterville, as chair of the Technical Issues Committee (TIC). McEachern will serve as chair of the committee until October 2005. He brings to the committee a wealth of experience with accounting standards, having served as a member of the Auditing Standards Board of the AICPA as well as Chairman of the SAS No. 84 Task Force. McEachern has also served as a member of several SB task forces, such as Electronic Dissemination of Financial Information, Management Representations and Attestable Criteria. Additionally, he has experience on the Peer Review Board of the AICPA...