Speakout! (News & Trends).

ANDERSEN ALUM FEELS DRAWN INTO THE SPOTLIGHT'S GLARE

As a former Arthur Andersen alumni, I feel drawn into the spotlight--but not as the shining star! In the past, we were the shining stars. During my four years at Andersen, I was taught that my integrity must come before all else. That was more than 15 years ago. During my career I have been challenged on a few occasions to bend to the pressure of a company or a client. I have always said that after my long hours at work I want to be able to go home and sleep! That has kept me on the straight and narrow. I do think that the profession will survive this ordeal. However, we are getting the questions and we must have favorable responses.

DEBE GILLESPIE, CPA

Thousand Oaks

RESPONSE TO "READ THE FINANCIALS" IN THE MARCH/APRIL CALIFORNIA CPA

A recent real estate article in the San Jose Mercury News stated that the government was evaluating the tax breaks "given" to homeowners. I queried the author: "Are the federal tax break statistics netted against the standard deductions given up?" He responded immediately: "No, the focus is simply the size and distribution of various tax expenditures." Another example of government accounting off by billions.

GEORGE TOPLIFF, CPA

Sunnyvale

CPAs IN INDUSTRY SHOULDN'T BE FOXES IN THE HEN HOUSE

I disagree with [former Andersen CEO Joseph] Berardino. Our professional standards have come under the highest scrutiny since any point in our history. Intelligent people from diverse professions solicit, debate and decide what's best for us. The process is modern and admired throughout the world. Most of the world is still catching up.

CalCPA Chair David George was also correct in his letter to the Los Angeles Times published Feb. 17, by pointing out that management and boards are responsible for financial statements (but maybe not with veracity). Only caretakers of the books have the in-depth knowledge to assure compliance. As a member in industry, it would be very careless of me to "not know" of serious control breakdowns and conflicts of interest. Even more so for me, since I am a CPA in industry who is entrusted to guard the shareholders, board and public from misuse. We, in industry, are not supposed to be foxes in the hen house.

We don't need to change GAAP or GAAS. We need to follow them. There are more than enough FASB, GAAS and SEC pronouncements to tell us to do the right thing. There are rules for revenue recognition, options, asset impairment, loan losses and...