Accounting Professionalism—They Just Don't Get It

• Published in: Accounting horizons Vol. 18; no. 1; pp. 45 - 53
• Main Author: Wyatt, Arthur R
• Format: Journal Article
• Language: English
• Published: Sarasota American Accounting Association 01.03.2004
• Subjects: Accounting firms; Accounting policies; Auditing; Audits; Business education; Case studies; Competitive advantage; Consulting firms; Corporate culture; Corporate management; CPAs; Education; Ethics; Industrywide conditions; Leadership; Management; New employees; Nonaudit services; Skills; United States; United States > US
• ISSN: 0888-7993; 1558-7975
• DOI: 10.2308/acch.2004.18.1.45

The evolution of the growth in consulting services and the significant impact that consulting personnel had on changing the internal culture of the accounting firms was a profession-wide phenomenon and led to the demise of Andersen. Several of the remaining firms have taken steps now to divest themselves of their previously existing consulting practices, thereby removing some significant pressures that created internal cultural changes. The firms need to consider a number of initiatives. The tone at the top of the firms needs to change. The top leaders in the firms need to consider whether the four largest firms are really effectively unmanageable. The firms need to place greater internal emphasis on quality control in audit performance. The firms should reexamine their policies on hiring nonaccounting majors and experienced personnel. Finally, firms need to reconsider their compensation philosophies. Educators need to give some serious attention on how best to inculcate in students an appreciation for continuously striving for accounting professionalism.