Accounting Professionalism

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In “Accounting Professionalism-They Just Don’t Get It!” the author, Arthur R. Wyatt, takes us through the evolution of accounting firms and the accounting profession beginning with approximately the 1940s-50s. Wyatt begins by stating that emphasis was placed on technical knowledge and ethical professionalism without qualm to how the firm would be affected financially. The example of Anderson resigning from a railroad engagement because they disagreed with an accounting principle used in the industry illustrates the values in the profession prevalent in the era. Wyatt describes that consulting services became more prominent in the ‘80s and ‘90s. These consulting services arose as an extension of the audit engagement and generated more revenues for the accounting firm. It was this inclusion of consulting services in accounting firms that slowly corroded firms’ abilities to remain independent in audit engagements; for accounting firms became more focused on generating revenues than ensuring audit quality.

Wyatt also describes initiatives firms can take in order to rectify the lack of professional behavior. Wyatt begins by stating that the tone at the top in accounting firms must change. He describes recent managing partners as “cheerleaders” and states the need for individuals in top positions with the technical accounting expertise needed for professional behavior. Thought is also given to firm split-ups; the rationale being that a split-up may enhance the effectiveness and quality of the service being provided. More importantly, however, firms should place more effort in ensuring that client audits meet accounting standards and less in “assisting clients to structure transactions to avoid the intent…of the standards.” Accounting firms have come to lobby the FASB on behalf of client interests thus resulting in the accounting profession appearing to lack professional behavior and independence as well. Wyatt also places emphasis on the role of educators and the...