In the Metro-New York region, which includes the five boroughs and Rockland, Nassau, Suffolk, and Westchester, 81.5 percent of CPAs rate present business conditions in their local geographic area of New York State as fair or poor. Within the next two to five years, 88.8 percent of Metro CPAs say local business conditions will improve; 11.2 percent expect improvement within one year. 
 
Statewide, 67.6 percent CPA respondents rated present business conditions fair and rate present business conditions in their local geographic area better than they rate conditions statewide. CPAs 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, New York CPAs said banking/finance, high technology, accounting and health care are expected to show the most improvement in profits in 2004. CPAs predict that the banking and finance and technology industries will show the most improvement, the manufacturing industry will stay the same and the publishing industry will worsen.
 
"It is not surprising that banking/finance and technology are slated to improve. We see what businesses are spending in these areas," says Frank Marino, CPA, president of the Manhattan-Bronx Chapter. "As for publishing, that is directly related to the economy."
 
Looking at the CPA profession, 41.9 percent of Society members statewide feel public focus on corporate scandals will have a negative impact on general business practices and the New York State economy and 43.5 percent of Metro NY CPAs agree.  CPAs say the SEC is doing enough to regulate accounting practices (30.3 statewide, 30.6 percent Metro New York area). CPAs across the state agree the Public Company Accounting Oversight Board will have a highly positive effect or moderately positive effect on audit quality (63.1 percent statewide, 63.9 percent Metro 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 percent statewide and 44.1 percent Metro New York). Sarbanes-Oxley's impact on the credibility of financial statements is split between earnings quality will improve (47.3 percent statewide, 49.5 percent Metro New York) and earnings quality will stay the same (48.1 percent statewide, 45.8 percent Metro New York).  The effect of Sarbanes-Oxley on corporate integrity is 52.8 percent of statewide CPAs feel it will improve, 54.4 percent in Metro New York.
 
The most crucial step in preventing future corporate scandals, CPAs say, is increasing internal corporate policy and enforcement (38.5 percent statewide, 39.2 percent Metro New York) and stronger boards of directors (38.5 percent statewide, 22.4 percent Metro New York). 

 
Over sixty percent (60.4 percent) of those participating have been CPAs for more than 20 years.