by: rick telberg
oct. 28, 2000 – the debate at the fall council meeting of the american institute of cpas over the creation of the so-called cognitor cuts to the heart of the accounting profession and has left many cpas and non-cpa accountants reeling, divided, angry and confused.
in a political compromise, the council approved a substitute resolution offered by the ohio delegation which supports the new credential for a “global business professional” but requires the institute to conduct further research and to “prepare a business plan to include financial projections demonstrating the viability of this endeavor; as well as market research results and an analysis of the implications for student enrollment,” smartpros reported from the scene. the new credential will be up for a membership vote at the aicpa spring council meeting.
here’s a sampling of opinion from a completely unscientific survey. these are just some of the on-the-record reactions. some of the off-the record reactions are unprintable.
“in november 1997 we listed information on 15 certifications available to accountants. we just updated that study and find there are now over 30, most of which have come on-line since 1997. i just am not sure we need another one.”
— ron mano, professor, weber state university.
“once again the aicpa is concentrating on a minority of its members (super large firms) and ignoring the people who need their help the most – the vast number of small firms who make up its membership. it seems their efforts are always directed towards the big guys. the biggest need in our profession today is attracting people into it and convincing them to stay when they join. the aicpa needs to take the forefront in that regard and i can’t see them doing anything. perhaps the institute is pursuing this path of cognitor because they see no future in our profession as mere cpas, as there won’t be anyone left.”
— allan boress, cpa, and a noted marketing consultant to cpa firms.
“i was aware of several delegates who were going to the meeting with no decision or no 100-percent clear direction from their states. they were trying to maintain an open mind, but seemed focused a little heavy on the political-ness of this whole thing. seems like they came up with a good “plan c” compromise, all issues considered. barry, et al., will consider this a “win” and now have the traction (permission?) they need to continue to pursue the end goal. my advice would be, that now that they have this behind them, everyone involved will need to concentrate their efforts on communicating this thing properly for it to gain the next step in the process.”
— janet caswell, cpa, austin, texas, and one of the most progressive thinkers in the profession
“i was at council, and did take the mike in support of the substitute resolution. personally, i believe that the concept of a global designation makes a great deal of sense, and i would far prefer to be ahead of the curve than behind it. i applaud the aicpa leadership for their courage and vision in raising this potential to this level of consideration. now, though, it’s time to talk about the actual strategies and tactics – that is, now we have to work out the details. the resolution, as it was passed, allows us the time and the permissions to carefully and deliberately consider those details – along with the involvement of members. no matter what the outcome of this discussion, we owe ourselves, our clients, our constituents and the future students the opportunity for the consideration of this concept. regardless of how the process ends up, we will be a better profession for having participated in this discussion.”
— bea nahon, a leader among solo-owned and small firms.
“when i told the arizona society of practicing accountants, a national society of accountants affiliate, at a board meeting about the word ‘cognitor,’ they all laughed , and asked what was that? the public will do the same. again, another idea from the elitist ivory tower. the aicpa, since about 1927, has spent millions to make the term “cpa” a household word. can you see in the average household, the husband taking out the trash and his wife say: ‘honey don’t forget to throw out the letter from our cognitor?’ the real question is what individual, or individuals, is going to make all the money setting this up?”
— jack schabow, a phoenix non-cpa accountant and financial advisor.
“true to form, the aicpa is turning the silk purse into a sow’s ear. a broad-based knowledge credential that includes some cpas does make sense. however the way the aicpa is approaching it makes no sense. the problem comes in trying to include all cpas, most specifically those of us who do attest work. it is simply not possible to reconcile our independence ethics, principles and rules with the driving concepts of ‘cognitor.’ ”
— jim hudspeth, cpa, olalla, wash.