Subject: File No. S7-16-98
 
Date:    8/19/98 4:29 PM
     
     
     
     
     
Jim Lierman@WMI
08/19/98 05:29 PM
I am writing concerning the proposed amendment to Rule 102(e) of the Rules 
of Practice. I have been a CPA for 19 years and have been employed by a 
Fortune 100 company for 18 years.
     
After reading a document from the AICPA I understand that the SEC is 
proposing an amendment to Rule 102(e) to censure, suspend or bar from 
practice before the SEC, a person who engages in ?improper professional 
conduct.?
     
First, I support the position of the AICPA and agree with their position 
and do not want to burden you by reprinting their position here.
     
Secondly, I personally concur with the SEC?s attempt to define situations 
when it should discipline individuals when there has been gross negligence 
or willful violations of standards. However, what is particularly upsetting 
to me is the potential interpretation of applying the discipline where 
there has been a single act of simple negligence and the application of the 
strict standards to accountants only. In my career I have seen management 
(CPA?s and non-CPA?s) implement policies that, in hindsight, were not 
accurate. It appears to be highly inequitable to apply such rules to one 
person while another will go unpunished. Furthermore, not only is it unfair 
but it doesn?t appear to be solving the problem. For example, Smith 
knowingly implements a decision that causes financial statements to be 
misstated and as a result you punish Jones because he is a CPA. The problem 
here is Smith, yet he goes without discipline while an innocent Jones is 
unfairly burdened with the punishment. In my career I have had to make 
numerous estimates and assumptions and it is unreasonable to expect to be 
100% accurate all of the time.
     
As mentioned before, I support the AICPA but I wanted to voice my 
additional concern about the unfairness of the application of the amendment 
to accountants only.
     
Thank you for allowing me to express my opinion.
     
Sincerely,
     
James D. Lierman, C.P.A.