WELCOME

New Board Member OrientationPresented by

Michael Daggett

Introductions of Directors and

SpeakersPresented byTed Lodden – WestKen Odom - East

What Are the Responsibilities of

a Member of a Board of

Accountancy?Presented byLaurie Tish and Karen Turner – 2011 Western Ken Odom and Kim Tredinnick – 2011 Eastern

Why Did You Agree To Serve On The State Board?

Heard they served good coffee. High per diem. The seats on the Mortuary Board were filled. To escape from my clients (kids, dog, cell

phone….). Wanted to make life more hectic for my

partner. Other….

Other Possible Reasons for Serving on the Board

Want to give back to the profession that I have enjoyed.

Desire to get rid of the “bad apples.”Need to ensure the public’s interest is protected.

Believe licensing carries an obligation that requires

monitoring.Fulfilling my civic obligation.

Primary Functions of the State Board of Accountancy*

License qualified individuals and firms to practice public accountancy.

Investigate and adjudicate complaints against licensed CPAs and CPA firms.

*State of Washington Rule 18.04.015

Ensure the ongoing competence of its licensees through required continuing education and Quality Assurance Review or approved peer review.

Enjoin the unlicensed practice of public accountancy and the unauthorized use of the CPA designation, all in accordance with the Public Accountancy Act.

Whom Do You Represent?

My employer/firm My industry group The CPA profession The general public Business community Users of financial

information

CPA candidates Educators My political party The Governor Consumer protection

groups Others…?

Size and Staff of State Boards Vary

(See NASBA State Board Profile) Persons Regulated (California~74,000 compared to

Virgin Islands ~50) Board Members (range of 2-22)

Licensee members (range of 2- 17) Public members (range of 1-8)

Board Staff (range of 1 part-time – 85 full-time) Executive director, deputy director Administrative staff Legal counsel

Board Committees

RulesContinuing Professional

EducationPeer/Quality Review

Compliance Assurance

CommunicationsComplaint/Investigation

ExamOthers?

Fulfilling The Board’s Responsibilities Set and maintain license requirements – “The

3 Es” (Education, Examination, Experience)

Adjudicative functions Complaint-based system Referrals from other regulators

Ensure continuing competence of licensees Mandate continuing professional

education Require peer review/compliance

assurance Support mobility

Considering How Boards Operate:How Can We Prevent An Expectation

Gap? Communication among Board, CPAs and

public Balance expectations of:

Public and users of CPA services Exam candidates Licensees Board members

Oversight of ‘touch points’ with stakeholders Exam candidates Licensee renewals Disciplinary matters – both the complainant and

the licensee

General Advice Be familiar with your Board’s organization, internal

controls and policies and procedures Avoid “ex parte communications,” off-the-record communications with one of the parties to a proceeding Direct inquiries to Board staff, rather than attempting

to answer them yourself Maintain confidentiality of details related to the

Board’s activities Support Board actions with relevant statutes and

regulations If your Board needs help, call your Regional Director

or NASBA!

NASBA = 55 Boards of Accountancy

• Current Accountancy Board members = NASBA Delegates• Former Accountancy Board members = NASBA Associates• NASBA’s member Boards are located in:

– 50 states– DC, Guam, Puerto Rico, Virgin Islands and the CNMI

The State Boards of Accountancy are collectively the largest regulatory body of licensed public accountants in the world.

NASBA/AICPA Joint Efforts

• Uniform Accountancy Act• International Qualifications Appraisal Board• Uniform CPA Examination• Standards for CPE Sponsors• Coming Soon – International Exam

administration

AICPA/NASBA UAA• Sets substantial equivalency

requirements• Promotes uniformity• Basis for mobility among states• Basis for international Mutual

Recognition Agreements

NASBA/AICPA International Qualifications Appraisal Board• Mutual Recognition Agreement partners:

Canadian Institute of Chartered AccountantsInstituto Mexicano de Contadores PublicosChartered Accountants of IrelandInstitute of Chartered Accountants in AustraliaNew Zealand Institute of Chartered Accountants

Uniform CPA Examination

• 4-part computer-based since 2004• Three partners: AICPA (content and scoring),

NASBA (central clearinghouse for information on eligible candidates), Prometric (testing centers)

• Agreement extended until 2024.

Examination Review Board

• Body which reviews all aspects of the Uniform CPA Examination on behalf of State Boards as a basis for their reliance on the Examination’s results

• Annual report to Boards presented at Regional Meetings

CPE Program Standards• Updated this year with input from

AICPA.• Incorporates material previously

only covered in “Frequently Asked Questions.”

• Recognizes newer CPE formats.• Will be appended to UAA.

Acronym Quiz

Standard setters:PCAOB, IASB, FASBAssociations:IMCP, CICA, IFAC

• Exam-related:FAR, NTS, BEC

Designations:CA, CPA, EA (see chart in meeting

binder)

NASBA: Increasing the Effectiveness of State Boards of Accountancy.

An Overview of

NASBAPresented byDavid Costello

“Not Quite Masterpiece

Theater”Act I

Ted A. Lodden and Janice Gray2011 Western Regional

Bucky W. Glover and Jeff Chickering

2011 Eastern Regional

Who Are the Key Players and Making the Headlines?

In The Beginning….

• “Resolved, that the New Jersey Board of Public

Accountants invite the Examiners appointed by

the Regents of the University of New York, the

Examiners appointed by the University of Illinois;

and the members of all State Boards of Public

Accountants, to meet at the Marlborough-

Blenheim Hotel at Atlantic City, N.J. in October

1908, to confer in regard to matters of mutual

interest.”

Who cares about what the Board of Accountancy does?Public relying

on financial information prepared by licensees

CandidatesEducatorsLicensed

ProfessionalsInternational

professionals and regulators

Others?

Speaking for the PublicFederal Agencies

US Trade Representative

HUDSEC

Consumer groupsCenter for Public

Interest Law (California)

Accountants for the Public Interest

Elected officialsGovernorsLegislators

Others?

Speaking from the Campuses

American Accounting Association (AAA)

Association of Collegiate Business Schools and Programs (ACSBP)

Association to Advance Collegiate Schools of Business (AACSB)

Beta Alpha Psi

Others?

Speaking for the ProfessionAmerican Institute of

CPAsState CPA SocietiesNational Society of

Accountants (NSA)International Federation

of Accountants (IFAC)Association of

Government AccountantsAssociation of Hispanic

CPAsThe Accountants

Coalition (TAC)

National Society of CPA Practitioners (NCPAP)

National Association of Black Accountants (NABA)

American Society of Women Accountants (ASWA)

Institute of Management Accountants

Financial Management Association International

Etc.

Ironing Out DifferencesLegislation is more likely to be passed if

stakeholders can work out their differences before the legislation is introduced.

Mobility Legislation – Successful when state board and professional groups are in agreement

Education Legislation – Successful when state board, profession and educators are in agreement (120/150 hour debate)

Can your board lobby?Many boards are prohibited from

lobbying, or hiring a lobbyist – but they can “educate” legislators or serve as “resources” for legislators. What can your board do to influence legislation?

Can your board establish rules without legislative approval?

How does your board reach the public?Hold public forums?Meet on college campuses?Enhance its Web site?Other avenues for public input?

NASBA ResponsesNASBA representatives attend and offer written/oral

testimony at federal and state hearings in support of state boards of accountancy, and at professional conferences. Have a hearing coming up and you want NASBA there? Contact Linda Biek at lbiek@nasba.org

NASBA State Board Relevance Committee –Web page NASBA Ethics and Strategic Professional Issues

CommitteeMonitors and evaluates the issues of AICPA’s PEEC.

NASBA Regulatory Response CommitteeResponds to exposure drafts on standards, policies,

etc., that could impact state regulation of the accounting profession.

Headline events“Never trust a reporter with a nice smile.”

-- William Rauch

Bad news travels fast. Good news takes the scenic route.”

-- Doug Larson

“A lie can travel half way around the world while the truth is just putting on its shoes.”

-- Mark Twain

IRS Regulating Tax PreparersIRS Commissioner Shulman announces

multi-year effort to provide standards for and oversight of the tax preparation industry. – January 2010

Non-CPA, non-lawyer, non-EA preparers to meet program’s requirements.

Databases to be created with new registration numbers.

Fall 2011 certain paid preparers will be required to pass new competency test.

Expected to start in 2012, certain paid preparers must have 15 hours of continuing education annually.

Regular renewals of Preparer Tax Identification Numbers (PTINs).

Standards and Fraud Make News

Standards Fraud

Congressional Hearings

IFRSSEC considers IFRS

Roadmap – July Panel

Adoption by other countries

Impact on private company standards

SchemesPonzi schemes

across the countryBrokerage firmsInternational

incidents

-- Will Rogers

“All I know is what I read in the papers.”

“Not Quite Masterpiece

Theater”Act II

HOW WE COMMUNICATE

Thomas Kenny - Director, Communications

Louise Dratler Haberman - Director, Information & Research

WEB SITE www.nasba.org

• Links to member boards’ sites• Newsletter highlights• Meeting presentations• Committee reports• White papers, letters

• Meeting information• Committee membership lists• Bylaws, UAA, other NASBA documents• Stay tuned for new features

MEETINGS• Annual Meeting• Regional Meetings• CPE Conference• Executive Directors

Conference• Legal Counsel

Conference • Committee Meetings• Special Conferences

PUBLICATIONS

• State Board Report - Newsletter• CPA Candidate Performance on the

Uniform CPA Examination• Ethics Matters – CPT Newsletter• ALD News

QUARTERLY MAILING• Executive summary

and all responses to Regional Directors’ Focus Questions

• Highlights of Most Recent BOD Meeting

• Approved Minutes of Previous BOD Meeting

• New Focus Questions

OTHER MEDIA

• NASBA Twitter• News blast• Press Releases (PRNewsWire)• Quick Polls (for Executive Directors

seeking prompt answers to administrative questions from other Executive Directors)

E-MAIL

• To reach any NASBA staff member just send your message to first initial then last name then @nasba.org

• dcostello@nasba.org• kbishop@nasba.org• tkenny@nasba.org• lhaberman@nasba.org

EVERYONE NEEDS E-MAIL• E-mail reaches out to

quickly distribute information and get current responses. It saves us time and money. Please promptly notify NASBA (aholt@nasba.org) of any e-mail address change.

Questions