Times have changed in the accounting profession and yet some of the basic fundamentals and principles remain with us. There is no question that the challenges to keep these basic principles sound and in good stead are more difficult today. Accounting firms have changed in the last twenty-five years and expanded beyond the traditional core services once offered by them. In fact some of the expanded services are now considered core services with firms. These additional services have been in reply to the wishes and demands of clients and a response to the needs of CPA firms to grow and develop to provide a future for their people by attracting staff with a diverse and wide range of competencies.
Auditor independence is a core principle to CPA firms.
Independence in fact and appearance has been the backbone of the accounting profession and the main reason why the accountants are still considered the most trusted professionals. We have some concerns as to the purpose of the new auditor independence requirements, when other formalized measures have been established to deal with independence concerns. We support the actions recently taken by the ISB and SEC to bring independence matters to the attention of audit committees. With the implementation of these new requirements, it seems that we are not giving any time to measure the effectiveness of the audit committee oversight. The Proposal will have significant consequences on the accounting profession and require careful consideration by all parties.