Enron Affects All CPAs

BY STEVEN EDELMAN

What was the most significant event to affect the profession in the past 50 years? It was the disclosure of Enron’s massive manipulation of its financial reporting and the fall of one of the nation’s most prominent and respected CPA firms.

It has had a profound effect on me as a CPA, and is an event that affects every CPA, whether in public or private accounting, the academic or nonprofit world—even students deciding whether they want to join our profession.

Given the importance of the Enron debacle, why has the JofA, the profession’s leading publication, given it so little editorial attention? What limited attention the story has received reflected a legal tone, rather than the substantive analysis of a CPA.

What else can I say, other than that I am surprised, disappointed and a bit embarrassed.

Steven Edelman, CPA
New York City

CAREER TIPS

CPAs share lessons from dads

To celebrate Father’s Day, the JofA asked accountants across the country to share some lessons they learned from their fathers—especially ones that helped them later on in the accounting profession. Here are their stories.

SPONSORED REPORT

How to audit high risk areas

Revenue recognition, internal control over financial reporting, accounting estimates and going concern are areas of audit that have emerged as particularly challenging and complex.

PRACTICE MANAGEMENT

Q&A: How to determine a client’s price sensitivity

To price effectively, CPA firms first need to determine the price sensitivity of individual clients. Author and consultant Ron Baker, an unabashed value-pricing champion, explains how to do it in this Q&A.