In the December 2000 Publisher’s Column, you asked for comments on the UAA, in support or opposition. I’m giving you both.
The National Conference of CPA Practitioners (NCCPAP) is a national organization representing only practicing CPAs. I write this letter not only as the president of NCCPAP presenting an official position, but also as a practicing CPA, a member of the New York State Society, and a member of the AICPA with my own thoughts and beliefs.
The Uniform Accountancy Act (UAA) has many provisions that affect the public’s perception and confidence in our profession. We strongly support those provisions of the UAA that continue to enhance the public’s confidence in the services we provide and the protection that those services afford the public.
We support the provisions dealing with—
However, we strongly oppose certain provisions that are, in our opinion, detrimental to the public interest.
The UAA contains a provision that would permit CPA firms to have non-CPA owners, requiring that only a simple majority of the ownership interest be held by CPAs for a firm to designate itself a “CPA firm.” We feel that the adoption of this provision would be in direct conflict with protecting the public’s interest and continued confidence in the profession because it would create substantial confusion about what a CPA firm is.
We, as CPAs, due to regulatory oversight, self-regulation, and a sense of pride in the respect we are afforded, consistently retain the public’s confidence in the integrity of our profession. We believe that any non-CPA ownership of CPA firms will erode the public’s confidence in the profession’s integrity.
We recognize the market pressures for MDPs. But we also feel that as critical as the need to make a living is, we should not sacrifice the trust of the public by taking the easy road. I think few people would argue that when the 49% “actively participating nonaccounting professionals” actually earn 75% of revenue, these nonregulated, nonlicensed professionals will have significant influence in the way the “accounting firm” conducts its business, hires its employees, markets its services, and renders its advice to its clients.
I submit to you: Independence is gone once an accounting firm becomes an MDP.
Robert L. Goldfarb, CPA
President, National Conference of CPA Practitioners
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