1. 1 WHERE’S THE PROFIT? OPPORTUNITY, AVOIDANCE OR DENIAL Gregory W. Leffard Gulf Insurance Group

2. 2 Market Segments “Final Four” Major Firms – “Group B” All others

3. 3 Differences in Segments AOP differences “Size matters” Regulatory requirements Perception issues

4. 4 AICPA Membership Consulting: 6,822 Education: 7,569 Government: 13,198 Industry: 138,294 Law: 2,040 Public Accounting: 128,709 Other Areas: 22,406 Inactive Members: 10,953 Total: 329,991

5. 5 Services Provided / Attest Public Company Audit Private Company Audit Non-Profit Audit Other Attestation Services

6. 6 Services Provided/Non-Attest Tax Bookkeeping Business Advisory Services Consulting Agreed Upon Services Trustee Financial Advisory

7. 7 Practice Management Risk Recognition Pricing of Services Risk Reward Analysis “Preventative Accounting” Realization Rates

8. 8 Regulatory Environment Change is inevitable How far will it go? Who will regulate? –State –Federal –Self/Industry Qualified Regulators

9. 9 Predicting the Future Has the industry changed enough? How to underwrite the changes Is history even relevant? Is the industry ready to participate in loss to a greater degree? Do they have the financial ability to participate? Risk Management Jury perceptions Can the industry get a fair trial?

10. 10 Actuarial Analysis How to quantify the changes It history credible? What does all this mean to: –Frequency –Severity –Payout Patterns –Loss Development Factors Who Leads the Way?