Calcpa Sounds Off To Sec - California Society of Certified Public Accountants, United States. Securities and Exchange Commision - Brief Article

California CPA, Nov, 2000

CalCPA President Don Gursey recently fired off a letter to SEC Secretary Jonathan Katz, expressing CalCPA's support of the SEC's push to modernize independence rules related to financial interests and family relationships. However, he was critical of the SEC's rush to pass rules related to the scope of services CPAs can provide to audit clients. The SEC proposal forbids CPA firms from delivering services to their consulting clients.

The letter, which was endorsed by CalCPA's Executive Committee, stated that the quality of financial reporting in America is enviable by global standards and that, "In the absence of an immediate crisis, we fail to see the need to act so quickly that many who will be impacted are left out of the decision-making process."

CalCPAs Accounting Principles and Auditing Standards and the Professional Conduct committees have taken differing positions on the SEC proposal, demonstrating the complexity of the issue and the need for an extended professional dialogue.

To view Gursey's letter to the SEC, SEC Chairman Arthur Levitt's speech and the AICPA leaders' testimony before the SEC, go to: http://www.calcpa.org/californiacpa/newstrends/2000/independence.html .

We'd like to hear your opinion about the SEC ruling. Send your comments to Deanna McCrary, CalCPA editor/writer at deanna.mccrary@calcpa.org or, 1235 Radio Rd.; Redwood City, CA 940651217.