The Center for Audit Quality (CAQ), the
American Institute of Certified Public Accountants (AICPA) and five
other industry groups have asked the US Senate to avoid actions
that would impact the independence of accounting
The Senate is expected to consider reforms to
the US financial system this week as part of the Restoring American
Financial Stability Act of 2010.
The seven organisations said they are
concerned about amendments that would legislate certain
requirements within accounting standards, impeding public due
process and politicising standard-setting.
This includes the Brown amendment SA 3853
regarding financial reporting, which would introduce legislative
requirements for how entities report assets and liabilities.
In a letter to four Senators – Harry Reid,
Mitch McConnell, Christopher Dodd and Richard Shelby – the group
said accounting standards derive their legitimacy from the
confidence that they are established, interpreted and modified
based on independent, objective considerations that focus on the
needs and demands of investors.
“We believe political influences that dictate
one particular outcome for an accounting standard without the
benefit of a public due process that considers the views of
investors and other stakeholders would have adverse impacts on
investor confidence and the quality of financial reporting, which
are of critical importance to the successful operation of the US
capital markets,” they wrote.