The Reign of Confusion

Abstract The purpose of this essay is to organize my anecdotal experiences concerning financial accounting issues during my time at the New York State Society of Certified Public Accountants (CPA) between June 1999 and August 2005. The focus of the essay is on financial accounting rather than auditing, because auditing depends on the standards that govern recognition, measurement, presentation, and disclosure in financial statements. I have chosen the title for this essay deliberately to evoke the circumstances of Dickens’ novel, especially as it relates to the roles that individuals play in setting and implementing public policy. An idea that shapes public policy begins with individuals, and individuals, in the web that expands from the idea's central focus, implement them through statutes, regulatory actions, and standards. The essay begins with an attempt to distill into a few “symptoms” and “diagnostics” a wide range of experiences. Then, there is an “essay” to rationalize the elemental causes for the current reign of confusion. It ends with a perspective on next steps.