Can Professionalism and Commercialism Coexist in CPA Firms?

The news concerning PricewaterhouseCoopers's acquisition of Booz & Company rekindled discussions surrounding independence issues with respect to accountants providing both assurance and other services to their clients. Upon closer examination, however, more is involved than just independenc...

Full description

Saved in:
Bibliographic Details
Published in:The CPA journal (1975) 2015-02, Vol.85 (2), p.6
Main Author: Love, Vincent J
Format: Article
Language:English
Subjects:
Accounting firms
Acquisitions & mergers
Assurance services
Auditors
Audits
CPAs
Disclosure
Professional ethics
Professional practice
Profits
Public interest
Trump, Donald J
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The news concerning PricewaterhouseCoopers's acquisition of Booz & Company rekindled discussions surrounding independence issues with respect to accountants providing both assurance and other services to their clients. Upon closer examination, however, more is involved than just independence. The public is not an "informed third party having knowledge of all relevant information" to judge whether the CPA rendering an opinion is independent; rather, this is an issue of perception. The true professional can and does set commercial ramifications aside and focuses on the efficacy of the audit or other assurance engagement. CPAs must strive to be true professionals; however, CPAs are human, and they might be swayed by the commercial aspects of their assurance service-related decisions. The surest way to maintain professionalism and ensure the public's confidence in CPAs' assurance reports is to avoid providing any advisory service not in concert with CPAs' primary education, training, and experience. Professionalism and commercialism can coexist but commercialism should never trump professionalism. The public interest should always remain foremost in the professional's mind.
ISSN:0732-8435