LETTERS
Airports, Cont’d
Assembly Bill 2333 is an attempt to punish Orange County voters for rejecting an airport at El Toro. This bill by George Nakano (D-Torrance) has already passed the Assembly and is now before the state Senate.
The aim of AB2333 is to limit LAX growth by forcing Orange County to absorb much of the aviation growth generated by future population growth in the region. But the LAX problem is being exacerbated by growth in L.A. County and the Inland Empire, not by Orange County.
A new regional airport should be located as near as practical to the population centers in L.A. County and the Inland Empire. Los Angeles County has two severely underused airports (Long Beach and Palmdale.) The Inland Empire has four (Ontario, March, George and San Bernardino.) In Orange County, John Wayne airport is capable of handling up to twice its current number of passengers (without physical expansion and without nighttime operations.)
This bill is an attempt by L.A. officials to make our county a colony of sprawling Los Angeles.
Michael Smith
Mission Viejo
Accounting Reform
Despite reports to the contrary, most CPAs support strong and meaningful reform and reject any attempts by anyone to block it. The public and the CPA profession deserve a potent gesture of national reform from their elected representatives in Congress.
What constitutes meaningful reform, however, is very much in the eye of the beholder. The voluminous testimony from consumer groups, attorneys, government agencies, business interests and CPAs to date present different ways of looking at the issue.
CPAs in California that I speak with generally believe reform should include:
& #149; Increased discipline and oversight of the profession in close coordination with the SEC.
& #149; Greater speed and transparency of corporate financial reporting.
& #149; New rules for corporate governance including strengthening audit committees.
& #149; Legislation making it a crime to improperly influence or mislead an auditor.
Unfortunately, eager state legislators in California and elsewhere are interested in passing their own reforms. The reforms proposed in California would harm the small businesses and individuals who need and trust their CPAs. Proposals would compel audit clients to hire two accountants as opposed to only one. Some services, such as IT consulting and internal auditing require separation from audit clients, but the majority of business advisory services that accountants provide do not impact auditor independence.
Meaningful reform is needed on a national basis. Uniform rules and regulations are the most rational and efficient way to conduct business across state and international boundaries. The public and the accounting profession are deserving of legislation that will restore the credibility of the nation’s business and financial reporting process so that headlines of “earnings management” and “aggressive accounting” by businesses and individuals with questionable motives can be ended.
But the solution is not the troublesome reforms currently on the table in the California Legislature.
David L. George
(Georges is principal of Soren McAdam George Investment Advisory Services in Irvine and chair of the California Society of Certified Public Accountants.)
Litigation, Cont’d
Certain legislators are once again working to take away a citizen’s right to choose arbitration over litigation for dispute resolution.
Disputes settled with arbitration are usually resolved faster and are less expensive for everyone involved. Plaintiffs have lower legal bills, are provided swifter justice and are placed in a less intimating and stressful situation than in long, drawn-out court battles. At the same time, business, or those being sued, are also happier with the less costly outcomes.
Why would certain legislators want to eliminate arbitration and adversely impact citizen’s rights? Because, according to campaign contribution filings, personal injury attorneys gave more than $4.1 million to the California Legislature the last March election cycle alone, to influence rules to promote litigation and eliminate arbitration to the detriment of consumers.
Just follow the money.
Maryann Maloney
Executive Director, Orange County Citizens Against Lawsuit Abuse
Corona del Mar
