aicpa_asec_whitepaper_final_20082008april_2008

Is needed in light of the call for broader

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is needed in light of the call for broader disclosures from preparers and, as a result, less objective assessments by auditors. A shift toward principles-based standards could also increase litigation risk, and efforts to mitigate this risk are required to enable progress. It is also important to recognize that progress toward a more transparent, investor-desired reporting model need not compromise corporate strategic and competitive strategy. The more relevant, timely business reporting content and format that is advocated in this paper is not intended to promote the disclosure of confidential trade secrets or competitively sensitive information. Instead, it encourages companies to disclose information that allows an investor or other stakeholder to better understand value creation potential. Much of this information is already published by companies via Web sites, press releases, and other forms of communication, and what is needed is simply a more consistent and comprehensive approach. 21 J.Efrim Boritz and Eric E. Cohen, Assurance for a Data-Centric World , April 29, 2005 version, p. 14–15.
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29 Additional Notable Sources of Feedback in Establishing the Path Forward As of the publication date of this paper, the Center for Audit Quality (CAQ), an autonomous public policy organization affiliated with the AICPA, is in the process of conducting a national Public Dialogue Tour to discuss potential improvements to the quality, relevance, and integrity of financial reporting. The CAQ is visiting various regions of the country to hear directly from users of audited financial information and learn how business reporting might evolve to meet the information needs of all types of investors. The panelists and audiences are drawn from leading regional issuers, investors, current and former regulators, government officials, and academics. The goal is to facilitate a vibrant and robust discussion and move toward mutual consensus on the issues and, hopefully, on the future of business reporting. The public company auditing profession is present at Public Dialogue Tour events, but does not participate directly in the discussion. The profession believes it is important to hold these events to listen to the thoughts and ideas of other stakeholders in the capital markets. When the Tour is completed (in mid-2008), the Center’s aim is to prepare a report with findings and recommendations to be shared with participants and policymakers. 6) Leadership Responsibility of the Accounting Profession As stated earlier, the current manual corporate reporting and assurance process needs to evolve to a more cost-effective, efficient model that is better capable of handling the increasing complexity of business and market needs and demands for reliable, automated, timely, and comparable information. The accounting profession, including CPAs in business and industry as well as those in public practice, has a critical role to play in driving this evolution, and the sustainability of the profession depends upon its success.
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  • Spring '09
  • Prof.S
  • Cost Accounting, Securities and Exchange Commission, Business Reporting

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