William F. Ezzell, Deloitte partner and Immediate Past Chairman of the AICPA opened the 91st Annual meeting by leading an at times spirited discussion of the recent revisions to Ethics Interpretation 101-3 regarding client education and firm independence. Bill assured the very nervous group of the AICPA's intention to issue exhaustive "Questions and Answers" to further explain the seemingly near-impossible requirements currently detailed.
Ezzell also regaled the group with a wonderful story of a small California bank that evidently took the Sarbanes-Oxley momentum just a bit too far when it demanded that its small business customers adopt a five-year rotation policy with regard to their accounting firms. Incensed by the letter a group of local accountants met with their effected clients and drafted a joint letter in response to the bank. The letter thanked the bank for its sage advice and forethought in advising them that appropriate management would call for such a rotation and concluded by stating that the clients would not only comply but would also adopt a TWO YEAR rotation policy regarding their banking relationship. The banks' letter was rescinded the following day.
