Progress and Update Report on Advisory Committee on Accounting Profession's (ACAP) Recommendations by the PCAOB's Investor Advisory Board's Working Group

143 Pages Posted: 15 Feb 2018 Last revised: 18 Feb 2018

See all articles by Mary Bersot

Mary Bersot

Bersot Capital Management

Grant Callery

Oversight and Governance Solutions

Joseph V. Carcello

University of Tennessee

Parveen P. Gupta

Lehigh University - Department of Accounting

Norman Harrison

FTI Consulting

Bess Joffee

Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF)

Damon Silvers

American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)

Lynn E. Turner

Independent

Date Written: October 27, 2016

Abstract

In May 2007, Secretary of the Treasury, Henry M. Paulson announced the Department of Treasury was establishing the Advisory Committee on the Auditing Profession (ACAP) to consider and develop recommendations relating to the sustainability of the auditing profession. The Advisory Committee was comprised of 21 members. The members included a former Federal Reserve Chairman, a former Securities and Exchange Commission (SEC) Chairman, former SEC Chief Accountants, attorneys, auditors, corporate board members, businesspersons, and representatives of investors. The ACAP held numerous meetings and public hearings during 2007 and 2008. ACAP considered both, oral and written submissions in its deliberations. It published and exposed a draft report for comments. On October 6, 2008, the ACAP issued its final report and recommendations. Those recommendations were directed to various organizations: the SEC, the Public Company Accounting Oversight Board (PCAOB), and the American Institute of Certified Public Accountants (AICPA), the American Accounting Association (AAA), and the National Association of State Boards of Accountancy (NASBA). The charge of our Working Group was to document and provide commentary on the degree of progress made to date on each of the ACAP recommendations contained in its Final Report issued on October 6, 2008. The Committee offered thirty-one recommendations in three key areas: (1) Human Capital, (2) Firm Structure and Finances, and (3) Concentration and Competition. To deliver on its mandate, our Working Group adopted a two-pronged approach to gather information. One, we conducted our own research from publicly available sources. Two, we sent letters to NABA, PCAOB, U.S. Department of Treasury, AICPA, AAA and the SEC soliciting their response to document the progress that each has made on recommendations applicable to them. This technical report is the outcome of this research.

Keywords: ACAP, PCAOB, Human Capital, CPA Firm Structure and Finances, CPA Firm Concentration and Competition, Investory Advisory Group

JEL Classification: M40, M42, M48, M49

Suggested Citation

Bersot, Mary and Callery, Grant and Carcello, Joseph V. and Gupta, Parveen P. and Harrison, Norman and Joffee, Bess and Silvers, Damon and Turner, Lynn E., Progress and Update Report on Advisory Committee on Accounting Profession's (ACAP) Recommendations by the PCAOB's Investor Advisory Board's Working Group (October 27, 2016). Available at SSRN: https://ssrn.com/abstract=3101029 or http://dx.doi.org/10.2139/ssrn.3101029

Mary Bersot

Bersot Capital Management ( email )

265 Magnolia Ave # 100
Larkspur, CA 94939
United States

Grant Callery

Oversight and Governance Solutions ( email )

United States

Joseph V. Carcello

University of Tennessee ( email )

Department of Accounting & Information Management
629 Stokely Management Center
Knoxville, TN 37996-0560
United States
865-974-1757 (Phone)
865-974-4631 (Fax)

Parveen P. Gupta (Contact Author)

Lehigh University - Department of Accounting ( email )

621 Taylor Street
RBC #37
Bethlehem, PA 18015
United States
610-758-3443 (Phone)
610-758-5992 (Fax)

HOME PAGE: http://www.lehigh.edu

Norman Harrison

FTI Consulting ( email )

3 Times Square
New York, NY 10036
United States

Bess Joffee

Teachers Insurance and Annuity Association College Retirement Equities Fund (TIAA-CREF) ( email )

730 Third Avenue
New York, NY 10017-3206
United States

Damon Silvers

American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) ( email )

815 16th Street, NW
Washington, DC 20006
United States

Lynn E. Turner

Independent ( email )

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