"In a one-word summary, the speech was provocative. One could find points to agree and disagree with," said David Costello, NASBA president and chief executive. "It was an attention getter."

In a sharp-tongued speech on Sept. 18 before a group of nearly 400 professionals, Levitt underlined the need to modernize auditor independence rules and urged small firms to stand up to the American Institute of CPAs, which he said "is too often ignoring a duty to the public trust."

"I believe the time has come for the profession's own broader membership -- the smaller, independent accounting firms -- to stand up and take back what some are trying to take from them," said Levitt.

"Some in the profession seem to be more concerned with expanding their roles so broadly that, all too often, the audit responsibility becomes more a business line used to get a foot in the door for other, more profitable services," he told the group. "The AICPA, the profession’s trade organization, has even suggested a new credential, the Super CPA, which would somehow qualify accountants to consult and administer a whole host of diversified financial and professional services for their clients."

Levitt called the AICPA's new Internet portal a "commercialization of the signifigant responsibilities well performed by America's professional auditors."

In addition, Levitt made an ill attempt to soothe the minds of small firm practitioners who believe that the SEC proposal, if approved, would trickle down to the state level, affecting small businesses, said Costello.

"I don't think many in that room agreed with that," said Costello. "They believe what happens at the federal level would affect state boards."

According to Costello, perhaps the only point in Levitt's speech that most, if not all, audience members agreed with is the need to reevaluate auditor independence rules.

"We invited him and knew he would be an excellent speaker," said Costello. "We didn't invite him because we agree with everything he said. But we enjoyed his comments."

-- By Antoinette Alexander

Send comments to information@smartpros.com

Back to NewsLine