Southern Tier NY Region Rates Business Conditions Poor

New York CPAs Assess the State Economy
Southern Tier NY Region Rates Business Conditions Poor

FOR IMMEDIATE RELEASE

Looking at the Southern Tier New York region, 93.9% of CPAs rate present business conditions in their local geographic area of New York State as fair or poor. Over the next five years, 75.1% of Southern Tier NY CPAs say local business conditions will improve. Higher real estate taxes on their clients’ businesses have caused them to consider moving (59.0%) while increased sales taxes has had no effect (38.8%).

CPAs statewide rate present business conditions in their local geographic area better than they rate conditions statewide. They (73.0%) also feel the moderate increase in interest rates has had a null effect on the New York economy.

“These results are meaningful because CPAs have a broad business view of the economy,” said Jeffrey Hoops, CPA, NYSSCPA President. “Survey results are based on specific experiences of CPAs who as independent auditors, tax advisors and consultants need to understand their clients’ business from both a financial and operational perspective. CPAs are also able to access the business impact of the recent corporate governance scandals and resulting reform efforts of Sarbanes-Oxley.”

In reviewing fifteen key industries, banking/finance, high technology, accounting and health care are expected to show the most improvement in profits in 2004. Southern Tier New York CPAs predict that the health care and banking/finance industries will show the most improvement, the publishing industry will stay the same and the agriculture industry will worsen. Complete industry results for the Southern Tier Region can be found by clicking here.

“It is not surprising that health care and banking/finance are slated to improve. We see what businesses are spending in these areas,” says Patrick J. Price, CPA, president of the Society’s Southern Tier Chapter. “As for agriculture, that is directly related to the economy.”

Turning to the US economy, almost half (47.7%) of statewide CPAs are not satisfied with the economic policies of President Bush. Southern Tier New York CPAs are equally somewhat satisfied or not satisfied at all (45.0%).

Looking at the CPA profession, Society members feel public focus on corporate scandals will have a negative impact (41.9% statewide) on general business practices and the New York State economy while 39.1% of Southern Tier NY CPAs say it will have an insignificant impact. CPAs feel the SEC is doing enough to regulate accounting practices (30.3 statewide; 40.6% of Southern Tier New York CPAs feel the SEC has done more than enough. CPAs across the state agree the Public Company Accounting Oversight Board will have a highly positive effect (7.6%) with Southern Tier New York CPAs (6.1%) or moderately positive effect on audit quality (63.1% statewide, 62.6% Southern Tier New York).

CPAs also expect the regulations of the Sarbanes-Oxley Act to have a mostly positive impact on audit clients’ business practices (41.2% statewide) with 58.3% in Southern Tier New York saying it will have no effect. Sarbanes-Oxley’s impact on the credibility of financial statements is split between earnings quality will improve (47.3% statewide) while 59.9% in Southern Tier New York say earnings quality will remain the same. The effect of Sarbanes-Oxley on corporate integrity is 52.8% of statewide CPAs feel it will improve while 58.3% of Southern Tier CPAs say it will remain the same.

The most crucial step in preventing future corporate scandals, CPAs say, is increasing internal corporate policy and enforcement (38.5% statewide, 22.4% Southern Tier New York) and stronger boards of directors (24.9% statewide, 42.0% Southern Tier New York). Respondents statewide have seen the following difference in audit clients (15.7% more upper management and 24.1% more concern with internal control). In Southern Tier New York, 39.6% see no change in audit clients while 17.9% are more concerned with internal controls.

Recent changes surrounding the accounting profession has made CPAs more careful in client relations (41.0% statewide, 37.2% Southern Tier New York). CPAs reporting no change in handling client relations were 38.7% statewide and 42.3% Southern Tier New York.

Over sixty percent (60.4%) of those participating have been CPAs for more than 20 years. The CPA Poll has a statistical confidence level of +/-4.4% at the 95% confidence level and is based on a random sample survey of the Society’s membership. Complete details of the NYSSCPA Poll, including results in the Manhattan New York, Central New York and Western Regions can be found by clicking here.

Representing 30,000 CPAs, the New York State Society of Certified Public Accountants (NYSSCPA) is the oldest and largest state accounting organization in the nation.

Incorporated in 1897, the Society is a not-for-profit organization that seeks to establish and maintain high standards of integrity, honor, and character among certified public accountants. Its members are CPAs working in public practice, industry, government and education in a state that serves as the home of Wall Street and major financial institutions.

The New York State Society of CPAs is located at 530 Fifth Avenue, New York, NY 10036. To learn more about the Society call 800-633-6320 or visit the Society’s website at www.nysscpa.org.