WASHINGTON--Rep. John D. Dingell (D-MI), Ranking Minority Member of the House Committee on Commerce, today released a two-volume report on the accounting profession prepared by the U.S. General Accounting Office (GAO) in response to a March, 1994 request.

The report, entitled "The Accounting Profession: Major Issues: Progress and Concerns," represents a comprehensive review of the recommendations of the major accounting studies conducted from 1972 through 1995, and analysis of responsive actions taken by the accounting profession to improve accounting and auditing standards and the performance of independent audits of publicly owned companies required by federal securities laws.

Dingell issued the following statement:

"The GAO has done a thorough and exemplary job of analyzing the major unresolved issues facing public accountants, the SEC, boards of directors and users of financial reporting and in providing GAO's observations on the significance of these issues and the outlook for further progress. GAO's principal finding is that, while the accounting profession has been responsive in making changes to improve financial reporting and auditing of public companies, the actions of the profession have not been totally effective. More needs to be done. The most significant weaknesses exist in the areas of auditor independence, auditor responsibility for detecting fraud and reporting on internal controls, public participation in standard setting, the timeliness and relevancy of accounting standards, and maintaining the independence of FASB.

"Public confidence in the fairness and accuracy of financial reporting is critical to the effective functioning of our securities markets. I call on the profession and the SEC to take prompt action on the issues raised by this excellent report. I would also urge timely and vigorous Congressional oversight hearings at the earliest possible time to assess the amount of progress made and the need for Congressional action to ensure the continued integrity of public accounting."

Note: Copies of the 2-volume report (GAO/GGD-92-74) available through GAO at 202/275-6241


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