Henry Paulson, chairman and CEO of the Goldman Sachs Group, is calling for reform within the U.S. financial system to restore public confidence in business principles and practices.

Paulson made the comments in a speech before the National Press Club, in Washington, D.C. Paulson discussed an agenda of change in three principle areas: accounting policy, standards of corporate governance and conflict of interest. “In my lifetime, American business has never been under such scrutiny. To be blunt, much of it is deserved,” he said. “But let’s be clear, the overwhelming majority of American executives are men and women of integrity who are committed to the long-term success of their companies, and to creating value for their shareholders. And so, I see this as an opportunity to reassess our practices, renew our principles and rebuild the trust that is so fundamental to our markets and their vitality.”

Paulson suggested that CEOS should be required to certify that their companies have established reasonable procedures for assessing the accuracy and completeness of financial results and disclosures. He added that board audit committees must develop policies and processes to ensure that there is no doubt that the company’s auditors report to them and work for them.

Paulson also said the Securities and Exchange Commission must be responsible for setting and enforcing auditing standards, either by establishing an independent public regulatory organization or by taking more direct responsibility itself.

He also called for reform of the U.S. rules-based accounting system, more toward the “European system,” which is less rule oriented and more judgment based. Paulson encouraged the SEC to take a hard look at how accounting standards are set in the U.S., including governance of the Financial Standards Rule-making Board, selection of FASB members, the FASB standards-setting process with all of its time delays, and the overall resources at the FASB’s disposal.

He also called for improved corporate governance, and for brokerage firms to actively address their natural conflicts of interest.

“Integrity is the cornerstone, if not the bedrock, upon which all financial markets are based. I am confident we can move beyond finger pointing to attain real progress on meaningful reform,” he said. “I am certain that, working together, we can restore investor confidence and emerge from this period of uncertainty with our financial system and economy stronger than ever.”