Highlights of fall council meeting: credentials, ASB's role, audit quality centers, repositioning of SECPS all addressed.

Here are some of the more significant actions and events that took place at the governing Council meeting Oct. 20-21:

* Following six months of exploring whether to keep the current specialty credentials inside the AICPA, the Council accepted the Board of Directors' recommendation to retain all three designations (Personal Financial Specialist, Certified Information Technology Professional and Accredited in Business Valuation). The approved resolution also provides for financial support for the credentials, the underlying disciplines and the membership sections. Council also agreed with the AICPA Board of Directors' earlier determination that retention strategies should not include a national branding campaign because of the costs and effort required to achieve that level of recognition. Instead, the AICPA will develop marketing tools to help credential holders promote the designations in their local markets. In addition, each of the credentials must achieve financial break even as well as a minimum number of credential holders by a certain date, or the credential program may be discontinued.

* Council approved a resolution to restructure the Auditing Standards Board and add non-CPA members to the board. Having representatives from the user, regulatory and public communities will ensure greater participation in the standards-setting process for non-public entities, which is now the focus of the ASB. The Council's action recognizes that users of private entities' financial statements have needs very different from the users of public companies' financial statements. The Public Company Accounting Oversight Board sets auditing standards for public companies (i.e., "issuers").

* Council authorized establishment of the Employee Benefit Plan Audit Quality Center and the Government Audit Quality Center, which will be developed to provide firm members a set of best practices to follow and tools in these specialized areas. The Employee Benefit Plan Audit Quality Center is expected to be operational to receive firm admissions in spring 2004 and the Government Audit Quality Center by late summer 2004. Membership in the new centers will be voluntary for eligible firms. Member firms could hold themselves out as members of the applicable center to demonstrate their firms' commitment to quality audit practices. Other center benefits will be available via a Center Web site with news, tools, member interaction and more. Creation of these centers demonstrates the AICPA's commitment to the competency of members and its mission to assist them in fulfilling their public interest obligations.

* A new voluntary membership organization was approved, the "Center for Public Company Audit Firms." The Center replaces the SEC Practice Section, which saw several of its functions absorbed into the PCAOB. It will develop technical and educational guidance, serve as a forum for member firms to express their views on technical and regulatory matters, and administer a peer review program for member firms that will focus on the audits of non-public entities.

* In other actions, S. Scott Voynich of Georgia was elected as chairman of the AICPA Board of Directors for 2003-2004 and Robert L. Bunting of Washington as vice chairman. Council heard the inaugural speech of incoming chairman Voynich, which focused on the profession's integrity, saying that the future we shape for tomorrow comes from the values, hard work and commitment brought to efforts today.

* Recommendations from the Task Force on the Role and Responsibilities of Council were discussed. More input will be gleaned from Council members at their Mar. regional meetings, with the goal of requesting the full Council vote on revised recommendations at its spring 2004 meeting.

* Stuart Kessler of New York received the Gold Medal for Distinguished Service, the AICPA's highest award. Among other things, he served as chair of the AICPA Board of Directors in 1997-1998 and recently as president of the Foundation's Board of Trustees. His chairmanship of numerous Institute committees included the Personal Financial Planning Executive Committee, where he was a driving force in moving CPAs to the forefront in personal financial planning.