What ails the accounting profession?

Accountancy appears the least likely of all professions to be in a state of ferment. However, contrary to appearances, significant developments within the profession could profoundly affect the vital interests of the investing public and of corporate America. Observations about what is happening to the independent audit of the publicly-held corporation are presented. An advisory panel concluded that the profession is at a critical juncture. Forces at work both within and outside the profession could erode its independent role as watchdog for the public. The SEC bears a heavy responsibility for restoring the importance of the independent audit. Rather than bypassing the established mechanisms for setting accounting standards, defending the tort system to remedy audit failures and expressing cynicism about auditing firms, it should seek ways to strengthen the independent audit by an open dialogue with the profession.