Evolving Regulations and Oversight in the Public Interest

Summary

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Donald T. Nicolaisen was appointed the SEC's chief accountant in August 2003. He oversees the SEC's accounting policy initiatives and leads its efforts with national and international standards setters on critical accounting and auditing issues, and ensures that auditors adhere to the highest business and ethical standards. The dominant items on his agenda as new chief accountant include helping investors be better informed and restoring investor confidence through reforms that improve the financial reporting process. Nicolaisen thinks that it would be a very good thing for associations that represent financial officers to consider following FASB standards in financial reporting in their codes of ethics, and he would not anticipate different standards for CPAs and non-CPAs. He also says that the most important considertion when considering auditor independence is the appearance of independence. Nicolaisen has the expectation that accounting and auditing should have a bright future.

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Extract

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Evolving Regulations and Oversight in the Public Interest

SEC Chairman William H. Donaldson announced the appointment of Donald T. Nicolaisen, CPA, as the commission's chief accountant in August 2003. Nicolaisen oversees the SEC's accounting policy initiatives and leads its efforts with national and international standards setters on critical accounting and auditing issues. He also works closely with the Public Company Accounting Oversight Board (PCAOB) to ensure that auditors adhere to the highest business and ethical standards.

Nicolaisen was previously a senior partner at PricewaterhouseCoopers LLP, where he held a range of management and leadership positions after joining the firm's predecessor, Price Waterhouse, in 1967. From 1988 to 1994, he led Price Waterhouse's national office for accounting and SEC services. During that time, he was also a member of FASB's Emerging Issues Task Force (EITF).

Nicolaisen met with CPA Journal Editor-in-Chief Robert Colson at the SEC's Washington, D.C., office in late 2003.

The Role of the Chief Accountant

The CPA Journal: What is the dominant item on your agenda as the new chief accountant?

Donald T. Nicolaisen: Narrowing it down to one thing is difficult, but broadly, it's helping investors be better informed and restoring investor confidence through reforms that improve the financial reporting process. This includes reform in the accounting and auditing profession, which the Sarbane...

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