GAAP- The New Four Letter Word

Mrs. Businesspundit recently had one of those "continuing education" courses in order to keep her skills as an auditor fresh. With all the recent changes due to Sarbanes-Oxley, there was plenty to discuss in the class. The teacher, a well respected audit consultant who shall remain nameless, discussed the increasing costs for small private companies of complying with the new rules, and made a prediction. He said that small corporations may soon abandon GAAP, and use tax basis financial statements when obtaining credit, and that creditors may soon come to accept this. Non-GAAP statements aren't affected by most of the new rules, which means less time and worry for small companies. Mrs. Businesspundit responded to this idea with a quip that provided the title for this post "now GAAP has become the new four letter word." That seems to be how auditors feel about it.