New Directions for a Renewed ProfessionNew Directions for a Renewed Profession

Louisiana State UniversityFraud & Forensics Conference

July 19, 2005

Louisiana State UniversityFraud & Forensics Conference

July 19, 2005

Barry C. Melancon, CPAAICPA President & CEOBarry C. Melancon, CPAAICPA President & CEO

Agenda for TodayAgenda for TodayImage

America Counts on CPAs CPA Ambassador Program Image Research Results

Private Company Financial Reporting

Working in the Public Interest Financial Literacy Social Security Tax Reform

Advocacy & Outreach International PCAOB Others

Image America Counts on CPAs CPA Ambassador Program Image Research Results

Private Company Financial Reporting

Working in the Public Interest Financial Literacy Social Security Tax Reform

Advocacy & Outreach International PCAOB Others

Core Values & Quality Anti-Fraud & Corporate

Responsibility Center Risk Assessment Standards Audit Quality Centers Audit Committee Effectiveness Enhanced Business Reporting XBRL

Renewal of the Profession Minority Initiatives Ph. D. Crunch CPA Exam Student Recruitment

Core Values & Quality Anti-Fraud & Corporate

Responsibility Center Risk Assessment Standards Audit Quality Centers Audit Committee Effectiveness Enhanced Business Reporting XBRL

Renewal of the Profession Minority Initiatives Ph. D. Crunch CPA Exam Student Recruitment

Building the CPA ImageBuilding the CPA Image

America Counts on CPAs New tagline and marketing resources Underscores the value CPAs bring to

communities across America Resonates positively with business decision-

makers, investors and members alike Logo and tagline available from

www.aicpa.org/cpamarketing

America Counts on CPAs New tagline and marketing resources Underscores the value CPAs bring to

communities across America Resonates positively with business decision-

makers, investors and members alike Logo and tagline available from

www.aicpa.org/cpamarketing

New Positioning for ProfessionNew Positioning for Profession

More than 500 CPAs Trained & Equipped with Resources More than 500 CPAs Trained & Equipped with Resources

Background Key messages Talking points Speech PowerPoint

presentation Op-ed piece

Background Key messages Talking points Speech PowerPoint

presentation Op-ed piece

Article Pitch letter News release Q & A Additional

information about the profession

Article Pitch letter News release Q & A Additional

information about the profession

Updated to include Social Security ReformUpdated to include Social Security Reform

Good Work Yielding Good Results

Good Work Yielding Good Results

Highlights of Recent Research on the CPA Image

Highlights of Recent Research on the CPA Image

Research Methodology& Investor SamplingResearch Methodology& Investor Sampling

Penn, Schoen & Berland Associates conducted telephone interviews in March 2005

420 General Business Decision Makers 110 C-Suite Executives 506 Investors

Penn, Schoen & Berland Associates conducted telephone interviews in March 2005

420 General Business Decision Makers 110 C-Suite Executives 506 Investors

Goals of 2005 ResearchGoals of 2005 Research

Tracking attitudes and opinions since January 2003

Extent to which confidence has been restored in the profession

New developments in the profession and emerging political/public issues

Message themes and actions to improve the image of the profession

Tracking attitudes and opinions since January 2003

Extent to which confidence has been restored in the profession

New developments in the profession and emerging political/public issues

Message themes and actions to improve the image of the profession

97% 94% 95%89% 90%

2% 5% 5% 3% 6%

March 2005 J anuary 2003 March 2005 March 2005 J anuary 2003

Favorable Unfavorable

97% 94% 95%89% 90%

2% 5% 5% 3% 6%

March 2005 J anuary 2003 March 2005 March 2005 J anuary 2003

Favorable Unfavorable

Are you favorable or unfavorable toward Certified Public Accountants?Are you favorable or unfavorable toward Certified Public Accountants?

CPA Image/FavorabilityCPA Image/Favorability

37%37%

Very FavorableVery Favorable

General BDMsGeneral BDMs C-ClassC-Class InvestorsInvestors

38%38%47%47%52%52%

42%42%

Profession FavorabilityProfession Favorability

Are you favorable or unfavorable Are you favorable or unfavorable toward…? RANKED BY toward…? RANKED BY FAVORABILITY OF GENERAL BDMSFAVORABILITY OF GENERAL BDMS

General BDMsGeneral BDMs C-ClassC-Class InvestorsInvestors

Favorable/ Favorable/ UnfavorableUnfavorable

Favorable/ Favorable/ UnfavorableUnfavorable

Favorable/ Favorable/ UnfavorableUnfavorable

Physicians 93/3 92/5 93/4

Certified Public Accountants 97/2 95/5 89/3

Chief Financial Officers 93/5 95/5 61/24

Chief Executive Officers 92/5 93/7 57/29

Commercial bankers 90/7 89/7 70/14

Investment bankers 77/17 86/10 61/21

Attorneys 69/29 83/16 58/37

Management Consultant 62/32 85/14 56/19

Stock Brokers 59/34 79/16 60/28

Stock research analysts 59/26 80/16 53/20

% Saying Attribute Strongly Applies to CPAs

CPA “Heritage” Attributes ImprovedCPA “Heritage” Attributes Improved

Does this apply to CPAs or not?% Saying Strongly Applies

General BDMs C-Class Investors

Mar 2005

Jan 2003

Mar 2005

Mar 2005

Jan 2003

Committed to the rules of the accounting profession 75 63 61 58 48

Reliable 64 56 48 49 40Consistently demonstrates ethics 63 51 47 42 33

39%

32%

43% 41%42%

34%

42%

49%

All <$25MRevenue

$25M-$100MRevenue

$100M+Revenue

March 2005

January 2003

39%

32%

43% 41%42%

34%

42%

49%

All <$25MRevenue

$25M-$100MRevenue

$100M+Revenue

March 2005

January 2003

Does “Is essential to the success of my business” apply to CPAs?Does “Is essential to the success of my business” apply to CPAs?

% Saying Attribute Applies - Among General BDMs% Saying Attribute Applies - Among General BDMs

Bottom Line…Bottom Line…

Profession has come through scandals strongly

Resurgence of heritage attributes validates “America counts on CPAs” positioning

But… Work needed to expand image of CPA as

broad business and financial advisor Profession needs to take closer look at its

role in fraud prevention/detection

Profession has come through scandals strongly

Resurgence of heritage attributes validates “America counts on CPAs” positioning

But… Work needed to expand image of CPA as

broad business and financial advisor Profession needs to take closer look at its

role in fraud prevention/detection

Private Company Financial Reporting

Private Company Financial Reporting

Small Business SectorSmall Business Sector Approximately 24 million small businesses in

U.S. Represent 99.7% of all employer firms. Pay 44.3% of total U.S. private payroll. Have generated 60 to 80% of net new jobs

annually over the last decade. Employ half of all private sector employees. They represent the majority of clients CPAs

serve.

Approximately 24 million small businesses in U.S.

Represent 99.7% of all employer firms. Pay 44.3% of total U.S. private payroll. Have generated 60 to 80% of net new jobs

annually over the last decade. Employ half of all private sector employees. They represent the majority of clients CPAs

serve.Sources: U.S. Bureau of the Census; Bureau of Labor Statistics, Current Population Survey; U.S. Department of Commerce, International Trade Administration., according to SBA

Sources: U.S. Bureau of the Census; Bureau of Labor Statistics, Current Population Survey; U.S. Department of Commerce, International Trade Administration., according to SBA

Private Company Financial Reporting Task Force Private Company Financial Reporting Task Force

Determine whether or not General purpose financial statements of

private, for-profit entities, prepared in accordance with generally accepted accounting principles meet the needs of all constituents of that reporting.

The cost of providing all that is required in GAAP financial statements is justified by the related benefits to private company constituents.

Determine whether or not General purpose financial statements of

private, for-profit entities, prepared in accordance with generally accepted accounting principles meet the needs of all constituents of that reporting.

The cost of providing all that is required in GAAP financial statements is justified by the related benefits to private company constituents.

Participating OrganizationsParticipating OrganizationsLenders

American Bankers AssocAmerica’s Community Bankers Assoc

Commercial Finance AssocRisk Management Assoc

Various state banking organizations

Investors/ownersNational Federation of Independent Business

National Venture Capital Assoc

SuretiesNat’l Assoc of Surety Bond Producers

Surety Society of America

LendersAmerican Bankers Assoc

America’s Community Bankers AssocCommercial Finance Assoc

Risk Management AssocVarious state banking organizations

Investors/ownersNational Federation of Independent Business

National Venture Capital Assoc

SuretiesNat’l Assoc of Surety Bond Producers

Surety Society of America

PreparersAssociation for Financial Professional

Financial Executives International Financial Executives

Network GroupUS Chamber of Commerce

PractitionersState Societies

GeneralFASB

Federal Reserve Board

PreparersAssociation for Financial Professional

Financial Executives International Financial Executives

Network GroupUS Chamber of Commerce

PractitionersState Societies

GeneralFASB

Federal Reserve Board

Accomplishing MissionAccomplishing Mission

Discussion Paper Focus groups Surveys by independent market researcher

Random telephone sampling Broad outreach for any and all Questions same in both survey forms

Key: neutral; hard-driving; and factual summaries of viewpoints.

Discussion Paper Focus groups Surveys by independent market researcher

Random telephone sampling Broad outreach for any and all Questions same in both survey forms

Key: neutral; hard-driving; and factual summaries of viewpoints.

TF FindingsTF Findings

“Attributes” of GAAP reporting have high value according to all constituents (e.g., common language, consistency, etc).

Too many GAAP-specific requirements lack relevance or decision usefulness according to all constituents.

A majority of each constituent group believe it would be useful if underlying accounting in GAAP reporting were different, in certain instances, for public vs. non-public companies. (One exception – sureties in broad outreach.)

“Attributes” of GAAP reporting have high value according to all constituents (e.g., common language, consistency, etc).

Too many GAAP-specific requirements lack relevance or decision usefulness according to all constituents.

A majority of each constituent group believe it would be useful if underlying accounting in GAAP reporting were different, in certain instances, for public vs. non-public companies. (One exception – sureties in broad outreach.)

TF ConclusionsTF Conclusions

1) GAAP for private companies should be developed based on concepts and accounting appropriate for constituents’ distinctly different needs

2) TF does not believe that GAAP exceptions and other bases of accounting are best response to the study findings

3) Fundamental changes should be made in the current GAAP standard setting process to meet the reporting need of private company constituents.

1) GAAP for private companies should be developed based on concepts and accounting appropriate for constituents’ distinctly different needs

2) TF does not believe that GAAP exceptions and other bases of accounting are best response to the study findings

3) Fundamental changes should be made in the current GAAP standard setting process to meet the reporting need of private company constituents.

Summary ObservationsSummary Observations

Historical shift in U.S. Research results consistent with what IASB,

Canadians and others have been hearing No differences for differences sake Private companies would choose which

GAAP to follow Many details to be addressed but priority #1

must be the needs of the key stakeholders

Historical shift in U.S. Research results consistent with what IASB,

Canadians and others have been hearing No differences for differences sake Private companies would choose which

GAAP to follow Many details to be addressed but priority #1

must be the needs of the key stakeholders

Advocacy & OutreachAdvocacy & Outreach

InternationalInternational

Actively representing U.S. profession abroad International Public Interest Oversight Board IAASB convergence IASB/FASB convergence Will continue to affect accounting and

auditing of both public and private companies

Actively representing U.S. profession abroad International Public Interest Oversight Board IAASB convergence IASB/FASB convergence Will continue to affect accounting and

auditing of both public and private companies

Advocacy and OutreachAdvocacy and Outreach

PCAOB Coordinating Forum – PCAOB/GAO/ASB Independence and Tax Services Comment

Letter Permanent observer status on SAG Reports on Elimination of Material

Weakness Extension of 404 Compliance dates

PCAOB Coordinating Forum – PCAOB/GAO/ASB Independence and Tax Services Comment

Letter Permanent observer status on SAG Reports on Elimination of Material

Weakness Extension of 404 Compliance dates

Advocacy & OutreachAdvocacy & Outreach

Meetings with: Comptroller General of the US IRS Commissioner

Workload CompressionE-Filing Extensions

SEC Chief Accountant FASB

Meetings with: Comptroller General of the US IRS Commissioner

Workload CompressionE-Filing Extensions

SEC Chief Accountant FASB

Working in the Public InterestWorking in the Public Interest

360 Degrees of Financial Literacy:

CPAs Making a DifferenceMore thanMore than1.6 million 1.6 million hits!hits!

More thanMore than1.6 million 1.6 million hits!hits!

We’re Building AlliancesWe’re Building Alliances

American Red Cross Department of Labor GAO FDIC Investor Protection

Trust IRS Jump$tart Junior Achievement

American Red Cross Department of Labor GAO FDIC Investor Protection

Trust IRS Jump$tart Junior Achievement

Nat’l Endowment for Financial Education

Nat’l Council of Higher Education Loan Programs

National Business Educators Association

National Council on Economic Education

U.S. Treasury’s Office of Financial Education

Nat’l Endowment for Financial Education

Nat’l Council of Higher Education Loan Programs

National Business Educators Association

National Council on Economic Education

U.S. Treasury’s Office of Financial Education

Launching a National PSA Campaign with the Ad CouncilLaunching a National PSA Campaign with the Ad Council

Friends Don’t Let Friends Drive Drunk

Friends Don’t Let Friends Drive Drunk

Smokey BearSmokey Bear

Keep Americ

aBeautif

ul

Keep Americ

aBeautif

ul

CPA Financial Literacy Resource Center: www.aicpa.org/financialliteracyCPA Financial Literacy Resource Center: www.aicpa.org/financialliteracy

Ranks #3 on

Google and

Yahoo&

#2 on MSN

Search Engines

Ranks #3 on

Google and

Yahoo&

#2 on MSN

Search Engines

Social Security ReformSocial Security Reform

Federal Tax Reform Federal Tax Reform

Major Presidential initiative We are positioning ourselves as the

thought leaders and as a resource Purpose of this White Paper is to foster

informed discussion by providing unbiased facts and analysis

Major Presidential initiative We are positioning ourselves as the

thought leaders and as a resource Purpose of this White Paper is to foster

informed discussion by providing unbiased facts and analysis

Core Values & QualityCore Values & Quality

Anti-Fraud & Corporate Responsibility Resource CenterAnti-Fraud & Corporate Responsibility Resource Center Established www.aicpa.org/antifraud in 2002 Resources based on user perspective: i.e. auditor,

financial manager, educator, student, etc. For the auditors:

Statement on Auditing Standards (SAS) No. 99, Consideration of Fraud in a Financial Statement Audit requires auditors to review the organization’s

programs and controls to address fraud risks 8 hour CPE Course – “Fraud and the CPA” Competency self-assessment tool for fraud prevention

Established www.aicpa.org/antifraud in 2002 Resources based on user perspective: i.e. auditor,

financial manager, educator, student, etc. For the auditors:

Statement on Auditing Standards (SAS) No. 99, Consideration of Fraud in a Financial Statement Audit requires auditors to review the organization’s

programs and controls to address fraud risks 8 hour CPE Course – “Fraud and the CPA” Competency self-assessment tool for fraud prevention

Anti-Fraud & Corporate Responsibility Resource CenterAnti-Fraud & Corporate Responsibility Resource Center For financial managers

Ethics case studies for financial managers Management Override of Internal Controls: The

Achilles Heal of Fraud Prevention For academia and others

Fraud education program for the accounting curriculum

Institute for Fraud Prevention with UT Austin and ACFE

For financial managers Ethics case studies for financial managers Management Override of Internal Controls: The

Achilles Heal of Fraud Prevention For academia and others

Fraud education program for the accounting curriculum

Institute for Fraud Prevention with UT Austin and ACFE

Risk Assessment Suite of Auditing StandardsRisk Assessment Suite of Auditing Standards June 15 - Auditing Standards Board issued the

Risk Assessment exposure draft Eight separate proposed SAS’s If adopted, would establish standards and

provide guidance concerning the auditor’s: Assessment of the risks of material misstatement in a

financial statement audit, Design and performance of tailored audit procedures to

address assessed risks, Audit risk and materiality, Planning and supervision, Audit evidence

June 15 - Auditing Standards Board issued the Risk Assessment exposure draft

Eight separate proposed SAS’s If adopted, would establish standards and

provide guidance concerning the auditor’s: Assessment of the risks of material misstatement in a

financial statement audit, Design and performance of tailored audit procedures to

address assessed risks, Audit risk and materiality, Planning and supervision, Audit evidence

Risk Assessment Suite of Auditing StandardsRisk Assessment Suite of Auditing Standards Originally exposed on December 2, 2002 Significant revisions led ASB to conclud that the

ED should be re-exposed Would be effective for audits of financial

statements for periods beginning on or after December 15, 2006

60 day exposure period ends August 15, 2005

Originally exposed on December 2, 2002 Significant revisions led ASB to conclud that the

ED should be re-exposed Would be effective for audits of financial

statements for periods beginning on or after December 15, 2006

60 day exposure period ends August 15, 2005

Audit Quality CentersAudit Quality Centers

Designed to create a community of professionals committed to excellence

Shared experiences, best practices and access to specialized information and practical tools

Reiterates the commitment of our profession to provide high quality services that can be trusted.

A sign of our profession’s commitment to willingly and thoughtfully raise the bar on our own expectations.

Designed to create a community of professionals committed to excellence

Shared experiences, best practices and access to specialized information and practical tools

Reiterates the commitment of our profession to provide high quality services that can be trusted.

A sign of our profession’s commitment to willingly and thoughtfully raise the bar on our own expectations.

Audit Quality CentersAudit Quality Centers

Center for Public Company Audit Firms 889 Member Firms Approximately 96% audits covered

Employee Benefits Audit Quality Center 960 Member Firms More than 2/3 audits covered

Governmental Audit Quality Center 360 Member Firms

Center for Public Company Audit Firms 889 Member Firms Approximately 96% audits covered

Employee Benefits Audit Quality Center 960 Member Firms More than 2/3 audits covered

Governmental Audit Quality Center 360 Member Firms

Audit Committee EffectivenessAudit Committee Effectiveness

Online Effectiveness Center www.aicpa.org/audcommctr/homepage.htm Roughly 56,000 unique visitors in 2005

Audit Committee Toolkits Corporate

40,000 print copies in circulation Tens of thousands of downloads

Special tailored editions Not-for-profit Government

Online Effectiveness Center www.aicpa.org/audcommctr/homepage.htm Roughly 56,000 unique visitors in 2005

Audit Committee Toolkits Corporate

40,000 print copies in circulation Tens of thousands of downloads

Special tailored editions Not-for-profit Government

Audit Committee ToolkitsAudit Committee Toolkits

17 individual tools include: Audit Committee Charter Matrix Key considerations of internal control and

fraud SEC’s Financial Expert requirement

decision tree Guidelines for executive sessions Guidance for evaluation of

internal audit function external auditors, and the audit committee

17 individual tools include: Audit Committee Charter Matrix Key considerations of internal control and

fraud SEC’s Financial Expert requirement

decision tree Guidelines for executive sessions Guidance for evaluation of

internal audit function external auditors, and the audit committee

Enhanced Business ReportingEnhanced Business Reporting

Consortium Model with CPA Leadership High quality, more transparent

information: Helps companies benchmark performance

against key performance indicators Reduces uncertainty that leads to market

volatility and higher cost of capital Restores market confidence, with overall

benefit to health of economy

Consortium Model with CPA Leadership High quality, more transparent

information: Helps companies benchmark performance

against key performance indicators Reduces uncertainty that leads to market

volatility and higher cost of capital Restores market confidence, with overall

benefit to health of economy

Strategic partners to AICPA include Microsoft (charter member of consortium) NASDAQ Business Roundtable Confederation of British Industry International Chamber of Commerce National Association of Corporate Directors National Investor Relations Institute

Strategic partners to AICPA include Microsoft (charter member of consortium) NASDAQ Business Roundtable Confederation of British Industry International Chamber of Commerce National Association of Corporate Directors National Investor Relations Institute

Enhanced Business ReportingEnhanced Business Reporting

XBRLXBRL

Started with the idea of one CPA Adoption is accelerating around the world XBRL will do for business reporting what bar

coding did for product distribution AICPA commitment to audit quality through

XBRL XBRL is not just for public companies! The AICPA and the profession are committed to

XBRL as the enabler to Enhanced Business Reporting

Focus on Financial ManagementFocus on Financial Management

New online Financial Management Center – to be up shortly

White paper on why employers should choose CPAs as their CFO,COO and CEOs in post Sarbanes-Oxley world

Stronger relationships with 2 leading associations for management accountants: CIMA-UK and CMA-Canada. Includes: Extending international associate status to CMA-C

members in the U.S., and Publishing 3 new Management Accounting Guides

developed with CMA-C in the next 6 months. Using content developed by CIMA-UK as a basis for

CPE programs and online content

New online Financial Management Center – to be up shortly

White paper on why employers should choose CPAs as their CFO,COO and CEOs in post Sarbanes-Oxley world

Stronger relationships with 2 leading associations for management accountants: CIMA-UK and CMA-Canada. Includes: Extending international associate status to CMA-C

members in the U.S., and Publishing 3 new Management Accounting Guides

developed with CMA-C in the next 6 months. Using content developed by CIMA-UK as a basis for

CPE programs and online content

Renewal of the Profession

Renewal of the Profession

Working to Bring More Minorities into the ProfessionWorking to Bring More Minorities into the Profession Minority Scholarship Program

More than $6M awarded to 1,300+ students in the last 10 years

Significant program changes pending

AICPA Student Leadership Workshop 800 participants over last 10 years

The Ph.D. Project A partnership of forward thinking corporations that creates

a pipeline of prepared individuals desiring to become accounting professors.

In last 10 years the program has doubled the number of minority PhDs

Minority Scholarship Program More than $6M awarded to 1,300+ students in the last 10

years Significant program changes pending

AICPA Student Leadership Workshop 800 participants over last 10 years

The Ph.D. Project A partnership of forward thinking corporations that creates

a pipeline of prepared individuals desiring to become accounting professors.

In last 10 years the program has doubled the number of minority PhDs

The PhD CrunchThe PhD Crunch

163 164150 157 160

175186

172 172 180 183 179168

156 150 154 153

111 115 110 106

020406080

100120140160180200

83 85 87 89 91 93 95 97 99 01 03

Source: AACSB analysis of National Science Foundation Doctoral Records FileSource: AACSB analysis of National Science Foundation Doctoral Records File

Total number of accounting doctorates produced by yearTotal number of accounting doctorates produced by year

The PhD CrunchThe PhD Crunch

A few of the solutions being explored with AAA Provide more information to potential

students, including special web site Financial support to PhD students Reduce the “costs” to PhD students/programs Encourage groups with vested interest in a

viable academic accounting profession to fund scholarships

A few of the solutions being explored with AAA Provide more information to potential

students, including special web site Financial support to PhD students Reduce the “costs” to PhD students/programs Encourage groups with vested interest in a

viable academic accounting profession to fund scholarships

Volume Task Force SummaryVolume Task Force Summary #1 reason candidates are not sitting for the

exam: they are too busy Response was consistent across all research

activities, and mirrors state boards’ experience

In a survey by Maryland State Board for Public Accountancy, 26% of the responses cited demands of employment for not scheduling exam time, followed by family commitments

While cost of review courses and exam was raised, it was not seen as an obstacle to taking the exam

#1 reason candidates are not sitting for the exam: they are too busy Response was consistent across all research

activities, and mirrors state boards’ experience

In a survey by Maryland State Board for Public Accountancy, 26% of the responses cited demands of employment for not scheduling exam time, followed by family commitments

While cost of review courses and exam was raised, it was not seen as an obstacle to taking the exam

PCPS Efforts to Encourage Firms to Make Time for ExamPCPS Efforts to Encourage Firms to Make Time for Exam

PCPS will be working to make sure that firms are encouraging their students to sit for the exam and not postpone it

Managing partners of firms have a great deal of leverage here, and PCPS has already started communicating that they need to encourage their CPA students to sit for the exam as soon as possible, despite the daily pressures of client work

PCPS will be working to make sure that firms are encouraging their students to sit for the exam and not postpone it

Managing partners of firms have a great deal of leverage here, and PCPS has already started communicating that they need to encourage their CPA students to sit for the exam as soon as possible, despite the daily pressures of client work

Student Recruitment – Signs of SuccessStudent Recruitment – Signs of Success

Over 929,000 students have responded to the campaign

Approx 60% of SHGP members recall the program

Over 255,000 students have registered with program

Over 175,000 contactable leads

Over 929,000 students have responded to the campaign

Approx 60% of SHGP members recall the program

Over 255,000 students have registered with program

Over 175,000 contactable leads

Break Through Clutter

Generate Leads

Create Involvement

Take Action

Student Recruitment – Signs of SuccessStudent Recruitment – Signs of Success 42% of high school SHGP members are

more likely to consider accounting as a result of the SHGP program

44% of early college SHGP members are more likely to consider accounting as a result of the SHGP program

68% of early college SHGP members have taken steps to pursue accounting

42% of high school SHGP members are more likely to consider accounting as a result of the SHGP program

44% of early college SHGP members are more likely to consider accounting as a result of the SHGP program

68% of early college SHGP members have taken steps to pursue accounting

Next GenerationSome promising signs…Next GenerationSome promising signs…

130000135000140000145000150000155000160000165000170000175000

2000 2002 2003

Accounting Enrollment

34995 37010

970012665

0

10000

20000

30000

40000

50000

60000

2000 2003

Bachelors MastersGraduatesGraduatesEnrollmentEnrollment

Numbers Continue to Move UpNumbers Continue to Move Up More students in early college are declaring accounting as their major;

more high school students are planning to declare accounting as their major

More students in early college are declaring accounting as their major; more high school students are planning to declare accounting as their major

7.0%

4.0%

6.0%

3.1%3.2%

2.0%

1.0% 1.2%2.2%

3.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2000 2001 2002 2003 2004

Early College Students High School

Our Obligation to Tomorrow’s CPAsOur Obligation to Tomorrow’s CPAs

Support staff sitting for the Exam Underscore the profession’s core values:

objectivity, competence and integrity Communicate the importance of professional

affiliations Instill the profession’s vision of excellence in the

next generation Live the vision every day We are the image of the profession.

Support staff sitting for the Exam Underscore the profession’s core values:

objectivity, competence and integrity Communicate the importance of professional

affiliations Instill the profession’s vision of excellence in the

next generation Live the vision every day We are the image of the profession.

New Directions for a Renewed ProfessionNew Directions for a Renewed Profession

Louisiana State UniversityFraud & Forensics Conference

July 19, 2005

Louisiana State UniversityFraud & Forensics Conference

July 19, 2005

Barry C. Melancon, CPAAICPA President & CEOBarry C. Melancon, CPAAICPA President & CEO