Chair's corner.

The profession and the Institute have been at the center of tremendous change during the past year. We've been under intense scrutiny and sometimes attack. As chairman, I have focused a great deal of energy on listening to the membership and sharing information. I continue to be passionate about our profession and concerned about how the public perceives us. Research has shown that the strength of our reputation has carried us through these rough waters with surprisingly minimal damage. These findings are a tribute to the history of our profession and to our core values.

With the business world adjusting to life in the Sarbanes-Oxley environment, and both corporate leaders and CPA firms adapting to new roles and public expectations, the AICPA remains the champion of not just the value of CPAs, but also of their values.

How will our passion for the profession translate into action? What actions are we prepared to take to answer the profession's critics and support the hard-working CPAs across this country? These are questions I have heard repeatedly as I have traveled through some thirty-odd states these past 10 months.

Change is in the works. Change for the good. Much of what needs to happen will occur in small increments as requirements within the new regulatory environment become clear. Many familiar areas of the Institute will have new and vigorous roles as the profession moves forward. For example, while the Public Company Accounting Oversight Board concentrates on the corporate sector, the Auditing Standards Board is moving to establish clear and effective standards for private companies. One part of this effort involves reconstituting technical industry expert panels, which focus on accounting and attest matters for CPAs in certain industries. The panels will enable the Institute to offer more effective tools to be used in CPAs' financial reporting and audit roles.

The SEC Practice Section will remain in force as well, committed to working with the new board while continuing to advocate for the profession. Among other initiatives, it is developing a peer review program centered on the kinds of inspections that will be performed by the PCAOB so that firms can meet their licensing and AICPA requirements. The goal is to provide a bridge between the peer review required by state accountancy boards and the PCAOB inspections. Moreover, the SECPS will continue to speak for the firms it represents by, for example, commenting on various PCAOB rule proposals.

Elsewhere, the AICPA is redoubling efforts to offer opportunities to enhance member competence and maintain the profession's commitment to high-quality performance. The proposed bylaw amendments on ethics are one example. They reinforce our commitment to integrity, objectivity, competence and professionalism, as well as acknowledge the rightful enforcement efforts of other agencies involved in regulating or overseeing the accounting profession.

As you can see, the Institute staff and committees are keeping a strong foothold in areas of critical importance in the changing environment. Our goals, as always, are to protect the public interest and to enhance our members' professionalism. Our efforts are constantly evolving to reflect the profession's emerging needs.

The changes that confronted us a year ago impacted many, many different facets of the profession and the way we work. Digesting all the significant changes and filtering them through the system and profession takes time, but I can assure you we are working diligently to realign ourselves and the Institute for a new era in the accounting profession.

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