An update on Enron fallout. (news update).

In our continuing effort to keep members informed of developments resulting from the fallout of Enron Corporation's bankruptcy, we are providing the following report.

Legislation

With more than 40 legislative proposals being debated in Congress stemming from Enron's collapse, AICPA Chair of the Board Jim Castellano told the Senate Banking Committee in Mar. that the value of any new public policy affecting the accounting profession must be assessed against a public interest test that asks four basic questions: (1) Will it help investors make informed investment decisions?, (2) Will it enhance audit quality and the quality of financial reporting?, (3) Will it help maintain confidence in the capital markets, our nation's financial reporting system and the accounting profession?, and (4) Will it be good for America's financial markets and economic growth?

Four initiatives that pass this four-point test, and therefore are supported by the AICPA, are ones to create a new private sector regulatory body for public company auditors, reform the financial reporting process to make it more timely and provide a broader "bandwidth of information," establish new rules for corporate governance, and support corporate truthfulness. The AICPA has pledged its support for these initiatives to Congress and the Securities and Exchange Commission.

CPA Message Ad

National print and radio advertisements began running in early Mar. to spread our message that CPAs continue to protect the public interest and serve the needs of employers and clients each and every day across the country. A number of state CPA societies placed the ads locally.

Members joined in by reprinting the ad and including it with tax returns being mailed to clients or with other correspondence, framing it for display in public areas, or providing copies in lobbies or reception areas. Some are placing the ad in local newspapers while others are running the radio ad.

Media Relations

In addition to serving as a resource for the media, we have stepped up our outreach effort through "editorial board meetings" with key national publications, such as Fortune, The Wall Street Journal, BusinessWeek, etc. AICPA Chair Jim Castellano and AICPA President & CEO Barry Melancon, and other leaders of the profession, have been participating in these editorial board meetings, the purpose of which is to help assure that our positions on various legislative proposals and other issues are clearly communicated.

Keep Informed

Stay tuned to future issues of The CPA Letter for more on future developments. Members are encouraged to visit www.aicpa.org frequently for timely information and updates as well.