The Accounting Profession: Issues for Congress

Michael Barrett. Jr. discusses whether private accounting standards have implemented the disclosure mandates of the Securities Acts. He outlines the issues in the SEC's delegation of public authority to the accounting profession as a prelude to the House Subcommittee on Oversight and Investigations' constderatt of accounting disclosure standards. Barrett notes that the most important aspect of the SEC's disclosure system is the independence of accountants to accurately report a company's financial health. Anudst evidence of improper relationships between accountants and management, Barrett surveys the problems of the public disclosure system, including the extent to which accountants should provide nonaccountng management advisory services to their clients. In laying our this agenda for the Subcommittee. Barrett urges the SEC to take a leading role in establishing a uniform accounting system to insure fair, accurate, and thnely disclosure.