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With accounting reforms not moving in Congress, 7 state legislatures are taking reform steps that are quite different from the bills pending on the Hill. For example, the California Assembly is considering a bill that would limit the consulting services that accounting firms can provide to their audit clients – and the New York state legislature is considering one that would require companies to rotate their audit firms every five years. These legislative efforts are in addition to the Texas State Board of Public Accountancy’s attempt to revoke Arthur Andersen LLP’s license to do business in that state.

For a Washington Post article on the Sarbanes bill and state efforts, see http://www.washingtonpost.com/wp-dyn/articles/A18198-2002May27.html.