SEC chairman Arthur Levitt.

"I've sensed a new willingness by those in the profession who have expressed serious concern about the Commission's rulemaking to come to the table and share with us the detail and depth of their concerns," Levitt said in a highly anticipated speech Tuesday at the American Institute of CPA's Fall Council Meeting in Las Vegas. The meeting was held on Oct. 23 and 24.

"And I'm optimistic that if we can continue to stay at the table, we will not only make progress towards long-overdue modernization, we will take the first steps towards mending and renewing the relationship between the Commission, the AICPA, and the profession," he added.

The SEC's proposal, which could limit the services audit firms provide to their audit clients, has shaken the profession and many opponents, including the AICPA and three of the Big Five firms, have been anything but silent. 

Those against the proposal believe it would decay audit quality, prevent firms from attracting talent and perhaps force accounting firms to sell their consulting arms. Some lawmakers have also expressed concern over the proposal and are urging the SEC, which allowed only 75 days for comments and testimony, to slow down.

"Considering what's at stake, I think it's time we take a moment to speak plainly and openly about the challenges before us," said Levitt. "It's time we start discussing what are the fundamental and common goals of the Commission, the AICPA, and the profession at large."

In addition, Levitt suggested that the AICPA adopt the Public Oversight Board charter proposal with "no strings attached funding."

He recommended that the Institute consider whether its own board should have a majority of public representatives. He added that "broader public membership on any organization -- particularly one with public responsibilities -- sustains lasting confidence."

Levitt also said the XBRL project should be taken a step further and that the AICPA should develop valuation models and provide account classifications for companies in common industries, making the data more meaningful for investors. XBRL -- or Extensible Business Reporting Language -- is a freely available electronic language for financial reporting.

"It is my intention to work with you, and with the profession, to craft rules that, five years from now, we will be able to look back on and honestly say, 'Our efforts, our patience, and our vision resulted in a consensus solution that will both nourish public confidence and lay a foundation for public trust in years and decade to come,' " said Levitt.

-- By Antoinette Alexander

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