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

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

SPONSORED REPORT

Getting leases in line

ASC Topic 842 is a relatively simple standard that can mean profound changes for organizations with leases. This report examines what makes this standard challenging and describes new ways for CPAs to add value.