Public Accounting: A Profession At A Crossroads

Sociologists generally agree on at least 4 basic factors common to all professions -- expertise, monopoly, public service, and self-regulation. Certified public accountants (CPA) use their expertise to render objective, independent opinions on financial statements of businesses. However, the recent growth in the magnitude of nonattest services is raising questions concerning the profession's service ideal and code of ethics. The profession is suffering from a lack of the appearance of independence and effectiveness. Some alternatives have been identified, including: 1. separating the profession into independent auditors and financial consultants, 2. separating the firms to do attest work or consulting exclusively, 3. separating the individuals within firms, or 4. separating clients. By combining the last 2 choices, the profession can continue its attest function combined with its consulting function, as long as it insists on strict separation of clients and personnel.