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Over the past 16 months, the CPA profession has gone through difficult changes: Arthur Andersen going out of business, U.S. capital markets tumbling sharply, and Congress passing the far-reaching Sarbanes-Oxley Act of 2002--the effects of which are just beginning to take hold. All these events had and will continue to have a major impact on the profession. In response, the AICPA and CPAs in every community in the country are focused intently on strategies for re-establishing the profession's time-honored reputation for integrity and competence.
As part of its efforts to address the crisis in confidence the profession faces, the AICPA conducted a national research initiative using Penn, Schoen & Berland Associates. PSB conducted more than 1,000 interviews with business decision makers and investors/shareholders across the country. The objective of the research was to ascertain whether respondents had changed their views about CPAs. Do they think any differently about CPAs after the accounting scandals, whom do they blame for the scandals and how much damage have CPAs suffered? And if CPAs suffered, what do they expect the profession to do to change those perceptions? Armed with these objective data, appropriate strategies and messages can be developed going forward.
Here are some of the key findings of the research:
Strengths of the Profession Today
* CPA favorability is second only to doctors.
* About 95% of business decision makers agree that CPAs are committed to the rules of the profession and consistently demonstrate integrity and ethics.
* Blame for the corporate accounting scandals focuses most intensely on CEOs, CFOs and boards of directors, not CPAs. (This may also present a challenge for CFOs who are CPAs.)
* Over 85% of both business decision makers and investors agree that "the corporate accounting scandals reflect poorly on a few bad apples in the accounting profession but not on the large majority of CPAs who are ethical and competent."
* Familiarity breeds contentment: Business decision makers have a high degree of confidence in CPAs whom they know and work with personally.
* Business decision makers report little impact on the use of CPAs for core services.
Challenges Facing the Profession
* Most importantly, almost 90% of both audiences believe CPA credibility has suffered.
* Over 80% of both audiences believe that the job of external auditors is to prevent fraud.
* About 80% of both business decision makers and investors believe "external auditors face an inevitable conflict between serving the public interest on the one hand, and their dependence on corporate clients who pay their fees on the other."
* 80% of business decision makers (and almost 90% of investors) believe that "CPAs who are employees of corporations are likely to have their professional judgment influenced by the corporate pressure to meet financial projections."
* About 60% of both audiences believe scandals reflect poorly on how all CPAs do their jobs.
* 40% of business decision makers (half of investors) think CPAs are willing to cut corners for clients.
* One-fifth of business decision makers see CPAs among most to blame for the corporate accounting scandals.
Moving forward, the Institute is developing methods and messages to address the issues affecting the CPA image. We are focusing on a strong grassroots effort that encompasses the state societies and our members, and reaches out to business, investors, academia, government and the media. Continue to watch The CPA Letter for more on the CPA image plan.
Three New Print Ads Developed for State CPA Societies to Run
To address the challenges the profession faces regarding its image short-term, and in response to state CPA societies' requests, three new print ads were developed for use by states that want to run ads now.
Under the theme "America Counts on CPAs," the ads were created for the benefit of members in small- and medium-sized businesses and firms. They demonstrate the value that CPAs bring to their employers and clients, the general public and the U.S. economy. They leverage the core values of the profession and the trust that exists between the CPA and his or her employer or client, as reported in the recent brand research findings (see related article on this page). The ads have been tested and the response was positive. State societies received all materials in late Mar.
One of the ads is pictured here. To view all the ads, visit www.aicpa.org/promotions/cpa_brand.asp.
COPYRIGHT 2003 American Institute of CPA's
COPYRIGHT 2003 Gale Group
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