How is your reputation faring? Surveys indicate booth good and bad news for CPAs.

• Author: Waters, Susan B.
• Position: From the CEO

NEARLY 18 MONTHS have passed since Enron declared bankruptcy, beginning a series of corporate and accounting scandals that led to the indictment, conviction and dismantling of one of the largest and most respected accounting firms. Indictments of many corporate executives and an overhaul of the regulatory environment for accountants also followed. No longer is the profession responsible for establishing standards of practice for audit of public firms. New conflict rules apply and a new federal apparatus is being established to regulate the profession. At the state level, there are new rules and the California Board of Accountancy no longer has a majority of CPAs.

The profession has responded with thoughtful and reasonable proposals to ensure greater protection of the public, separation of duties and disclosure of relationships. However, some responses have been divisive within the profession, with CPAs from one sector willing to criticize members of another area or size of practice and distance themselves from colleagues. But everyone stated the profession's commitment to honesty and declared no tolerance for accountants willing to break the rules.

But what does the public think of the accounting profession now? Two reports have been released that can help answer this question. The first is a CNN/USA Today/Gallup Poll conducted in November. The second is an AICPA research project that was conducted in December and January by Penn, Schoen & Berland Associates Inc. This project examined the attitudes of business decision-makers and investors toward accountants.

PUBLIC PERCEPTIONS

In the Gallup Poll, accountants rated highest over among business professionals and nearly identical to bankers when the public was asked to rate certain occupations for honesty and ethical standards. The survey was topped by nurses and followed by military officers, high school teachers, clergy, policemen, druggists, medical doctors and funeral directors. Behind accountants and bankers, journalists were next, but then the numbers fell dramatically for congressmen, building contractors, business executives, lawyers, labor union leaders, real estate agents, stockbrokers, advertising practitioners, car salesmen and telemarketers.

As a comparison, 79 percent of the public rate nurses high or very high for honesty and ethics. For accountants, 35 percent rate the profession highly, while 52 percent rate it as average in honesty and ethics, and 10 percent rate it low.

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