AICPA chair: cooperation must continue to protect investors.

Regulators, standard setters and the CPA profession must continue to work cooperatively if the best interests of investors are to be served, AICPA Chair Leslie Murphy said in opening remarks before an audience of 1,500 auditors, corporate controllers and chief financial officers at the Institute's 33rd annual National Conference on Current SEC and PCAOB Developments.

"Reliable and transparent financial reporting is fundamental to the well-being of our capital markets," said Murphy. "Now, more than ever, CPAs and the regulatory community must work together. The richest solutions to issues are those that we will craft together."

Murphy also illustrated how the profession and regulatory bodies are collaborating to improve the flow and presentation of financial information to investors. She cited Extensible Business Reporting Language (XBRL), a specification for electronic transfer of financial information. XBRL originated with the AICPA, and the SEC is actively encouraging the use of XBRL through a voluntary filing program.

Murphy addressed one of the most critical regulatory issues affecting public companies: compliance with Section 404 of the Sarbanes-Oxley Act. While the costs associated with SOX 404 are a subject of vigorous debate among companies, auditors and regulators, Murphy noted that as challenging as it has been to implement, SOX 404 overall has had a positive effect on financial reporting and the capital markets.