Audits 2004: CPAs Are in This Together
Corporate governance reform movement mobilizes auditors and auditees alike to work as never before as a united profession.
by Rick Telberg/At Large
CPAs, whether they are working in corporate financial departments or outside audit teams, are facing a host of challenges this financial-reporting season that requires new levels of professional cooperation, understanding and respect.
Perhaps most importantly, the majority agree that too many people in their organizations don't yet understand all the new rules and regulations brought on by the corporate-governance reform movement.
In an informal study of Rick Telberg/At Large readers, 83 percent said many practitioners and preparers appeared behind in their homework. Among auditors, 84 percent said it was a problem. Members in business and industry agreed significantly, with 78 percent nodding along.
One internal auditor said he was frustrated by his company's information technology department which told him the organization's plans for newly mandated internal controls systems were "fluid" and getting "more conservative" every time he asked.
Staffing, a perennial problem, is no less critical this year. Some 69 percent of CPAs said "there's not enough qualified staff."
New procedures and short-staffing naturally add up to more hours, a problem this season for 72 percent of those involved in the study.
With more hours, 75 percent of respondents agreed that costs and fees were rising "significantly" this year. One middle manger at a mid-sized CPA firm singled it out as a problem, noting "client resistance to higher fees."
On the other hand, CPAs responding to the study may just be suffering early-season jitters. Consider the fact that 40 percent said they are as well-prepared as last year and 23 percent think they're ahead of the game.
Still, only 9 percent expect no major changes and 10 percent think this year will be easier than last year.
"You want a prediction?" One auditor at a big firm summed it up: "I'll give you a prediction: Pain!"
