Council to vote

Council to Vote on AICPA/NASBA Report on Regulation of Profession and Change to Rules to Create Uniformity

A joint committee of the American Institute of CPAs and the National Association of State Boards of Accountancy issued recommendations for changes in the regulatory framework of the accounting profession. The report proposed ways to simplify practice-electronically and physically-across state lines and to refocus future regulation on those services commanding the greatest public interest.

The AICPA board of directors in February approved the report, and the governing council gave it overwhelming support at its March regional meetings. Council will vote on it formally at its spring meeting, which is being held in Washington, D.C., in May in connection with the AICPA Federal Key Person Coordinators Conference so council members can interact with members of Congress.

Assuming a favorable vote, council also will vote to balance the AICPA’s rules with those proposed in the report in order to begin the uniformity process. Of particular note are provisions on ownership of CPA firms by non-CPAs and liberalizing the continuing professional education requirement.

On the ownership issue, the report proposes a requirement that CPAs own a majority interest. Such a rule would apply only to firms performing attest services or that hold themselves out as CPA firms.

The report also permits alternative methods of acquiring CPE, such as on-the-job training supplementing formal classroom education.

Council’s affirmative vote on the report and on related AICPA rule changes would begin a major initiative to change rules and laws in each jurisdiction.