A firm vindicated; a profession enhanced.

The unanimous U.S. Supreme Court decision to overturn the criminal conviction of Arthur Andersen must represent a bittersweet victory for the approximately 28,000 employees who lost their jobs and, in many cases, their pensions when the government secured this now reversed conviction. In consideration of the stigma this criminal conviction could attach to all Andersen employees and believing that other CPAs, even those working in the private company arena, might likewise be subject to the statute that laid the foundation for the government's case, the AICPA filed a brief, amicus curiae (as a friend of the court), in the Supreme Court. It argued that instructions given to the jury to guide its deliberative process in interpreting the statute at issue were erroneous. The Supreme Court's decision was fully consistent with the arguments in our brief.

At the time of the original indictment, many in our profession expressed concern over what appeared to be a rush to judgment and its potential impact upon Andersen employees and partners. At the same time, the AICPA and leaders in the profession stepped boldly and swiftly to enhance how CPAs conduct audits and can help detect and minimize the risk of fraud. In the dark days surrounding Enron, the profession willingly shone light on its practices and procedures and took action to better protect the public interest.

The AICPA responded to the corporate accounting crises with serious enhancements to how CPAs conduct audits and detect fraud. From enhanced fraud guidance for CPAs through SAS no. 99, to a fraud training CD-ROM for corporate management, to the development of an online Antifraud and Corporate Responsibility Center, to extensive guidance to assist audit committees in effectively performing their responsibilities and addressing the risk of fraud, the AICPA has demonstrated the profession's commitment to its bedrock values of integrity, objectivity and competence.

Our members have stepped up their efforts as well. As perhaps never before, CPAs united to send the message to the American public that the actions of the few did not characterize the unwavering professional commitment of the many CPAs who have always done, and continue to do, the right thing every day. Public accounting firms have enhanced quality control in virtually every aspect of practice. And CPAs on finance teams throughout America are more committed to quality than ever before.

Research today shows that our profession's image has risen and in some cases surpassed pre-Enron levels, with CPAs garnering high favorability marks of 97%, 95% and 89% from business decision makers, executives and investors. Record student accounting enrollments indicate a renewed understanding among the next generation of the tremendous impact that CPAs have upon American business. New challenges for the profession certainly will evolve, but they will be effectively met by a capable and ethical profession.

We will never know what Andersen's future in the marketplace would have been without the criminal verdict. While this decision does not represent an approval of Andersen's conduct in connection with the Enron audit and will not result in a resurgence of the firm itself, it nonetheless represents a caution to everyone in America that rushed judgments can have devastating financial results from which thousands of innocent people never recover. We have long argued for reasonable and rational responses to crises, with a focus on fixing what is needed to ensure real change and progress in raising confidence in the capital markets. We hope the lessons learned from the past will lead, in the long run, to a far wiser and stronger corporate America--and a prouder profession of CPAs ever more committed to integrity, competence and objectivity.