The future of the accounting profession.

Lessons learned at the MAP Forum

The fallout from the public and political furor over corporate fraud poses many challenges to the accounting profession. For many CPA firms, perhaps the most daunting challenge is positioning themselves to continue to grow and be profitable in a landscape that, with passage of the Sarbanes-Oxley Act, is not clearly defined. Guidance on defining and navigating the landscape was the focus of a two-and-a-half day Accounting Firm Leadership Forum, "State of the Profession--Preparing Today for Tomorrow," developed by the AICPA MAP Committee. Almost 200 managing partners of small and midsize firms heard many speakers offering observations on recent events affecting the profession and recommendations for coping with the challenges.

Some speakers described programs that would help restore clients' and the public's confidence in the accounting profession and investors' confidence in corporations. Other speakers addressed specific issues faced by CPA firms. In summarizing some of the forum sessions, we hope to provide some practical guidance for coping with current and future challenges. For upcoming newsletter issues, we will mine the MAP forum speakers for articles that will help readers, whether they serve private or public companies.

Restoring credibility and confidence

At the start of the forum, AICPA President and CEO Barry Melancon, in his keynote address, looked forward to the future, citing the six leadership roles of the AICPA. In addition to its roles as a standard setter and as "a liaison between market institutions and corporations, jointly shaping programs and policies to guard the interests of investors," the AICPA has a research role, an educational role, a role in advancing the level of financial reporting, and a role in "promoting strong governance and internal control systems." (More detail about these roles and related initiatives is in Melancon's speech to the Yale Graduate School of Management available on the AICPA Web site: http://www.aicpa.org/news/2002/p020904a.htm.)

How did we get here?

Melancon's call to look forward was echoed by ex-Arthur Andersen chief executive Joseph Berardino who offered guidance on how the accounting profession could restore its positive image and help to prevent business failures. Berardino opened by saying, "I come before you in humility, humbled by the loss of my firm." Because he could be called to testify at civil trials involving Andersen, he avoided providing...