In Favor of Regulation

BY DANIEL J. SENGSTOCK

The reprint of Mr. Melancons speech at Yale University was impressive A New Accounting Culture ( JofA, Oct.02, page 27). However, it failed to address the real reason we are in this situation: Partners at the largest firms need to make the payments on their million-dollar houses and $80,000 Porsches.

Until regulation prevents this group from getting rich off the publics money, we will continue to have a problem. When it comes down to a choice between losing a client (and a bonus) or going along with a companys questionable accounting methods, too many auditors worry about how theyll make the next payment to support their extravagant lifestyles.

Daniel J. Sengstock, CPA
Scottsdale, Arizona

Where to find January’s flipbook issue

Starting this month, all Association magazines — the Journal of Accountancy, The Tax Adviser, and FM magazine (coming in February) — are completely digital. Read more about the change and get tips on how to access the new flipbook digital issues.

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