The Senate Regulated Industries Committee this week took up the issue of governmental oversight of the accounting profession.

Meeting on Tuesday, Feb. 5, committee Chairman Sen. Skip Campbell (D-Tamarac) said the committee’s aim was to discuss “questionable accounting techniques” in the widely publicized bankruptcy of Enron and the alleged wrongdoings of its accounting firm, Andersen. He cited the need for the Legislature to protect Floridians in the wake of the state pension funds’ $300-million loss that resulted from Enron’s collapse.

However, FICPA Executive Director Lloyd “Buddy” Turman has suggested that a scrutiny of accounting practices, spearheaded by Sen. Jack Latvala (R-Palm Harbor), is being brought up in retribution for the FICPA’s fierce opposition to McKay’s controversial tax proposal. Latvala denies this claim.

Rep. Ken Pruitt (R-Port St. Lucie) expressed doubt that a special task force created by the Florida Board of Accountancy (BOA) to evaluate the Enron case could objectively review accounting standards in the aftermath of Enron, describing the situation as a “fox guarding the henhouse.”

Sen. Latvala was the lone member of the committee to specifically bring up the issue of mandatory peer review, questioning why it is “was good enough for 34 states” but not Florida. The FICPA has long been an opponent of mandatory peer review.

Those invited to speak before the committee were BOA Executive Director Martha Willis, Florida Department of Banking and Finance Division Director Don Saxton, and Florida Department of Business and Professional Regulation Deputy Secretary Geoff Becker.

The FICPA’s Turman also was on hand to present testimony on behalf of Florida’s CPAs. Turman emphasized the Institute’s willingness to cooperate in seeking further measures to protect citizens in light of the Enron situation, but cautioned against a premature response by the Legislature.

“The Congress and federal regulatory agencies are actively considering whether the national, professional standards governing audits by CPA firms should be changed. We support that effort,” Turman stated. He added that the BOA does a “superb job of overseeing the profession.”

“There is no reason to believe that Florida accounting firms or offices are involved in any way in the Enron situation,” he said.