MACPA task force publishes recommendations for restoring faith in profession

After a summer of intensive study, an MACPA task force has unveiled a "white paper" of recommendations for restoring faith in the CPA profession.

The recommendations, presented to MACPA members during a live webcast on Sept. 19, could be used to respond to the SEC when it begins implementing the Sarbanes-Oxley Act of 2002. They also could give CPAs a position to communicate with state boards of accountancy, legislators and other relevant groups.

MEMBERS:Read the entire white paper and access other reform-related resources here.

While the intensive re-evaluation of the profession has identified a flaw in the way some CPAs have done business, the most important breakdown has been one of character and a lapse of values," the task force's report states. "Our most important responsibility remains to protect the public interest."

During its discussions, the task force focused on five principal issues facing the profession:

government regulation and oversight (the Sarbanes-Oxley Act);
public trust and confidence in the integrity of CPAs;
public understanding of the auditor's role;
corporate governance and responsibility;
the importance of ethical behavior and "doing the right thing."

In the end, though, the task force agreed that all CPAs in every corner of the profession must take a leadership role in their respective organizations and rededicate themselves to the profession's code of professional conduct and protecting the public's interests.

"The current crisis facing the accounting profession points out the need for strong moral leadership," the task force's white paper states. "Sometimes economic pressures can make it difficult to do the right thing. We recommend that companies emphasize the value of reputation of the entity in the long-term in addition to the importance of profit and growth."

"All of us should be ready, willing and able to step up and take responsibility for instilling trust (in the profession)," Robert Tarola, chief financial officer of W.R. Grace & Co. and a member of the task force, added during his webcast presentation.

The webcast panel presenting the recommendations represented the diversity and depth of the task force itself. In addition to Tarola, it included the following:

MACPA Chair Gray Smith, a partner with Ernst & Young.
Task force chair Wes Johnson, a former MACPA president and former chair of the Maryland State Board of Public Accountancy. Johnson is a current member of the AICPA governing council and the Board of Directors of the National Association of State Boards of Accountancy.
Tom Chambers, a sole practitioner from Maryland's Eastern Shore and member of the MACPA's Professional Ethics Committee.

"The amazing thing is that these gentlemen were representative of the quality and professionalism of our entire 23-member task force," said MACPA Executive Director Tom Hood.

The task force agreed that most of the new reforms — including those found in the Sarbanes-Oxley Act — are sound and will help improve CPA performance. The group identified a number of priority issues and proposed solutions, all focused on regaining public trust, protecting the public interest, and preventing a "cascade" effect that would severely restrict smaller practitioners and their clients.

"These proposals are designed to help restore public confidence in the profession and the markets, preserve the vitality of the CPA profession in Maryland, and strengthen the Maryland economy," the report states.

Moreover, the task force's activities were guided by one question: If CPAs don't take steps to win back the public's trust, who will?

"This crisis has shown the importance of the role CPAs play," Smith said during the webcast. "We are committed to confronting these issues head-on."

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