2014 Executive Director & State Board Staff Conference

Savannah, GeorgiaMarch 3-5, 2014

1.

Monday, March 3, 2014

10:00 am – 3:00 pm EXECUTIVE DIRECTORS COMMITTEE MEETING Moorings (Committee Members Only)

5:00 – 6:00 pm REGISTRATION Grand Ballroom South

6:00 – 8:00 pm WELCOME RECEPTION River Lawn

Tuesday, March 4, 2014

8:00 – 9:30 am TABLE TOPICS BREAKFAST AICPA Practice Analysis Grand Ballroom A Discussion Leaders: RUSS FRIEDEWALD Executive Director, Illinois Board of Examiners MICHAEL DECKER Director of Examinations, AICPA JOE MASLOTT, CPA Senior Technical Manager, AICPA Background Checks, Convictions & Disciplinary Actions/ CPA Exam Multi-Testers Grand Ballroom B Discussion Leader: WADE JEWELL Executive Director, Virginia Board of Accountancy 9:30 – 9:45 am WELCOME (with Legal Counsel) Grand Ballroom C Presiding: MARK CROCKER, CPA Executive Director, Executive Director, Tennessee State Board of Accountancy

9:45 – 10:15 am NASBA REPORT (with Legal Counsel) Grand Ballroom C Moderator: MARK CROCKER, CPA Executive Director, Tennessee State Board of Accountancy Speakers: CARLOS JOHNSON, CPA. Ed.D. Chair, NASBA KEN L. BISHOP President/CEO, NASBA

10:15 – 10:30 am BREAK

10:30 – 11:00 am LEGISLATIVE UPDATE Grand Ballroom C Moderator: JIMMY CORLEY Executive Director, Arkansas State Board of Accountancy Speaker: JOHN JOHNSON Director, Legislative and Governmental Affairs, NASBA

2.

Tuesday, March 4, 2014 (continued)

11:00 – 12:00 pm NATIONAL REGISTRY OF CPE SPONSORS AND THE FUTURE OF LEARNING: EXPLORING NEW LEARNING METHODS FOR CPE Grand Ballroom C Moderator: OFELIA DURAN Executive Director, Colorado State Board of Accountancy Speakers: JESSICA LUTTRULL, CPA Manager, National Registry, NASBA MARIA CALDWELL, ESQ. ChiefLegalOfficer/Director,ComplianceServices,NASBA ERIC DINGLER Director,AuditChiefLearningOfficer Deloitte Service, LLP 12:00 – 1:30 pm LUNCH Grand Ballroom B

1:30 – 2:00 pm UPDATE ON ADMINISTRATION OF CPA EXAMINATION Grand Ballroom C Moderator: RUSS FRIEDEWALD Executive Director, Illinois Board of Examiners Speakers: MICHAEL DECKER Director of Examinations, AICPA KIMBERLY FARACE Senior Client Services Manager, Prometric PATRICIA HARTMAN Director, Client Services, NASBA 2:00 – 2:30 pm INVESTIGATOR TRAINING Grand Ballroom C Moderator: JIMMY CORLEY Executive Director, Arkansas State Board of Accountancy Speakers: FRANK X. TRAINOR, ESQ. Staff Attorney, North Carolina Board of CPA Examiners RANDALL A. ROSS, CPA Executive Director, Oklahoma Accountancy

2:30 – 3:00 pm FOREIGN CREDENTIAL EVALUATIONS STANDARDS Grand Ballroom C Moderator: DORIS CUBITT, CPA Executive Director, South Carolina Board of Accountancy Speakers: BRENTNI HENDERSON-KING Manager, International Evaluation Services, NASBA

3:00 – 3:30 pm UPDATE ON FEDERAL AGENCY OUTREACH Grand Ballroom C Moderator: PAMELA IVEY Executive Director, Wyoming Board of Accountancy Speakers: COLLEEN CONRAD, CPA Executive Vice President/COO, NASBA

3:30 – 3:45 pm BREAK

3.

Tuesday, March 4, 2014 (continued)

3:45 – 4:30 pm NASBA’S CPE AUDIT SERVICE FOR BOARDS Grand Ballroom C Moderator: WADE JEWELL Executive Director, Virginia Board of Accountancy Speakers: TOM DEGROODT Executive Director, Missouri State Board of Accountancy MARIA CALDWELL, ESQ. ChiefLegalOfficer/Director,ComplianceServices,NASBA REBECCA GEBHARDT Manager, Compliance Services, NASBA

4:30 – 5:00 pm Q& A SESSION FROM ROLL CALL MATERIALS/ NEW EDs Grand Ballroom C Moderator: MARK CROCKER, CPA Executive Director, Tennessee State Board of Accountancy

5:00 pm RECESS

Wednesday, March 5, 2014

8:00 – 9:30 am TABLE TOPICS BREAKFAST (continued from Tuesday) Grand Ballroom A&B

9:30 – 10:00 am STATE SOCIETY RELATIONS Grand Ballroom C Moderator: NICOLE KASIN Executive Director, South Dakota Board of Accountancy Speakers: RICH JONES WA State Society President & CEO RICK SWEENEY, CPA Executive Director, Washington State Board of Accountancy 10:00 – 10:30 am NASBA TECHNOLOGY UPDATE Grand Ballroom C Moderator: WADE JEWELL Executive Director, Virginia Board of Accountancy Speakers: CHERYL FARRAR ChiefInformationOfficer,NASBA 10:30 – 10:45 am BREAK

10:45 – 11:15 am INTERNAL REVENUE SERVICE Grand Ballroom C Moderator: DAVE SANFORD, CPA Executive Director, Guam Board of Accountancy Speakers: LEE D. MARTIN, PMP DeputyDirector,OfficeofProfessionalResponsibility,InternalRevenueService

4.

Wednesday, March 5, 2014 (continued)

11:15 – 11:45 am CIVIL LITIGATION Grand Ballroom C Moderator: PAMELA IVEY Executive Director, Wyoming Board of Accountancy Speakers: NOEL ALLEN, ESQ. Legal Counsel, NASBA 11:45 – 1:15 pm RECOGNITION LUNCH Grand Ballroom B Presiding: MARK CROCKER, CPA Executive Director, Tennessee State Board of Accountancy

1:15 – 1:30 pm REPORT FROM LEGAL COUNSEL Grand Ballroom C Moderator: MARK CROCKER, CPA Executive Director, Tennessee State Board of Accountancy Speaker: STACEY GROOMS Manager, Regulatory Affairs, NASBA

1:30 – 2:45 pm DEPARTMENT OF LABOR Grand Ballroom C Moderator: MARK CROCKER, CPA Executive Director, Tennessee State Board of Accountancy Speaker: IAN DINGWALL, CPA ChiefAccountant,U.S.DepartmentofLabor

2:45 – 4:45 pm BREAKOUT SESSIONS Executive Directors (only) Grand Ballroom C Moderator: MARK CROCKER, CPA Executive Director, Tennessee State Board of Accountancy Board Staff (only) Grand Ballroom A Moderator: DON MILLS, CPA Investigator, Tennessee State Board of Accountancy

4:45 – 5:00 pm Q & A SESSION WITH NASBA LEADERSHIP Grand Ballroom C Presiding: MARK CROCKER, CPA Executive Director, Tennessee State Board of Accountancy

5:00 – 5:15 pm REPORT TO NASBA LEADERSHIP Grand Ballroom C Presiding: MARK CROCKER, CPA Executive Director, Tennessee State Board of Accountancy

5:15 pm ADJOURN

6:30 pm MARDI GRAS GALA HarborLawn

Thursday, March 6, 2014

9:00 am - 12:00 pm EXECUTIVE DIRECTORS COMMITTEE MEETING Moorings (Committee Members Only)

1.

Jesse F. Dixon Accountancy Board of OhioTracey Fithen Accountancy Board of OhioJohn E. Patterson, Esq. Accountancy Board of OhioCarol J. Preston, CPA Alabama State Board of Public AccountancyMonica L. Petersen Arizona State Board of AccountancyJames Corley, CPA Arkansas State Board of Public AccountancyTim Montgomery Arkansas State Board of Public AccountancyOfelia Duran Colorado State Board of AccountancySonia Worrell Asare, Esq. Connecticut State Board of AccountancyClifford Cooks District of Columbia Board of AccountancyVeloria Kelly Florida Board of AccountancyDarren Mickler Georgia State Board of AccountancyDavid Sanford, CPA.CITP Guam Board of AccountancyKent Absec Idaho State Board of AccountancySue Lenon Idaho State Board of AccountancyTia Marie France Illinois Board of ExaminersRuss Friedewald Illinois Board of ExaminersMatt Hoffman Illinois Board of ExaminersRobert E. Lampe Iowa Accountancy Examining BoardSusan L. Somers Kansas Board of AccountancyRichard C. Carroll Kentucky State Board of AccountancyPhyllis Gordon Kentucky State Board of AccountancyDennis L. Gring Maryland State Board of Public AccountancyLinda Rhew Maryland State Board of Public AccountancyAlan J. Schefke Michigan State Board of AccountancyDoreen Frost Minnesota State Board of AccountancyRansom Jones Mississippi State Board of Public AccountancyAndy L. Wright Mississippi State Board of Public AccountancyRebekah Dalbey Missouri State Board of AccountancyThomas DeGroodt, CPA Missouri State Board of AccountancyGrace Berger Montana Board of Public AccountantsHeather Myers Nebraska State Board of Public AccountancyDan Sweetwood Nebraska State Board of Public AccountancyLeslie Walsh Nevada State Board of AccountancyViki A. Windfeldt Nevada State Board of AccountancyJennifer Baca, CFE New Mexico Public Accountancy BoardRobert N. Brooks North Carolina State Board of CPA ExaminersWalter C. Davenport, CPA North Carolina State Board of CPA ExaminersLisa R. Hearne North Carolina State Board of CPA ExaminersDavid R. Nance, CPA North Carolina State Board of CPA ExaminersPhyllis W. Wiggins-Elliott North Carolina State Board of CPA ExaminersBuck Winslow North Carolina State Board of CPA ExaminersJim Abbott, Ph.D North Dakota State Board of AccountancyCarlos E. Johnson, CPA, Ed. D. Oklahoma Accountancy BoardRandall Ross, CPA Oklahoma Accountancy BoardMartin Pittioni Oregon Board of AccountancyLuis Barreto Puerto Rico Board of AccountancyDoris Cubitt, CPA South Carolina Board of AccountancyBridgette Goff South Carolina Board of AccountancyNicole Kasin South Dakota Board of Accountancy

MEMBERS BY BOARD

2.

Darla M. Saux, CPA, CGMA State Board of CPAs of LouisianaMark H. Crocker, CPA, CGMA Tennessee State Board of AccountancyApril Serrano Texas State Board of Public AccountancyWilliam Treacy Texas State Board of Public AccountancyDonna Hiller Wier Texas State Board of Public AccountancyWade A. Jewell Virginia Board of AccountancyChantal Scifres Virginia Board of AccountancyJennifer Sciba Washington State Board of AccountancyRichard C. Sweeney, CPA Washington State Board of AccountancyBrenda Sue Turley West Virginia Board of AccountancyBrittany Lewin Wisconsin Accounting Examining BoardPamela Ivey Wyoming Board of Certified Public Accountants

Alfonzo Alexander President, NASBA Center for the Public Trust & CROEd Barnicott Vice President, Strategic Planning & Program ManagementKen L. Bishop President & Chief Executive OfficerColleen Conrad, CPA Executive Vice President & Chief Operating OfficerAnthony Cox Graphics DesignerDaniel J. Dustin, CPA Vice President, State Board RelationsCheryl Farrar Chief Information Officer Rebecca Gebhardt Manager, Compliance ServicesCassandra Gray Manager, CommunicationsLouise Dratler Haberman Vice President, Information and ResearchPatricia Hartman Director, Client ServicesBrentni Henderson-King Manager, International Evaluation ServicesSteve Hill Multimedia & Video Services MgrGene Holt Records Management CoordinatorJohn Johnson Director, Legislative & Governmental AffairsThomas G. Kenny Director, CommunicationsAngela Layton Senior Meeting PlannerJessica Luttrull, CPA Manager, National RegistryChris Mays Manager, National Candidate DatabaseMatthew Wilkins Report Product Manager

Michael Decker AICPASuzanne U. Jolicoeur AICPAOphir Lehavy AICPAJoseph Maslott, CPA AICPAMat Young AICPARandal Breaux CBT, Enterprise Project ManagerEric Dingler, CPA Deloitte Service, LLPNancy Wolven-Juron Deloitte LLPLee Martin Internal Revenue ServiceKim Farace PrometricIan Dingwall, CPA U.S. Department of LaborRich Jones, CPA Washington Society of CPAs

MEMBERS BY BOARD (CONTINUED)

NASBA STAFF

OTHER PARTICIPANTS

NOEL L. ALLEN, ESQ. Allen, Pinnix & Nichols, P.A.510 Glenwood – Suite 301 Phone: 919-755-0505Raleigh, NC 27603 Email: nla@allen-pinnix.com

Noel L. Allen, Esq., has served as legal counsel for NASBA since 1997, and for the North Carolina State Board of CPA Examiners since the early 1980s. Prior to entering private practice, Mr. Allen was an assistant attorney general in the antitrust division of the North Carolina Department of Justice. He has authored books

on antitrust and trade regulation, including North Carolina Unfair Business Practice (Lexis, Third Edition), and is the U.S. editor of two multi-volume treatises, Competition Law in Western Europe and the U.S.A. (Kluwer), and Comparative Law of Monopolies (Kluwer). Mr. Allen has taught antitrust/trade regulation law and international business law as an adjunct professor and visiting lecturer at law schools in the U.S. and Europe and is recipient of International Service Awards for both the North Carolina World Trade Association and the North Carolina Bar Association. He is listed in the Bar Register of Preeminent Lawyers, and in U.S. News – Best Lawyers (Administrative/Regulatory & Antitrust Law). He earned his bachelor’s degree at Elon University, his J.D. at UNC-Chapel Hill, and a graduate diploma in International Competition law at the University of Amsterdam, the Netherlands. In 2009, Elon University awarded him an Honorary Doctorate. In its January 2013 issue, Business North Carolina profiled him as the state’s “Top Antitrust Lawyer.”

KEN L. BISHOPNational Association of State Boards of Accountancy (NASBA) 150 Fourth Avenue, North, Suite 700 Phone: 615-880-4201Nashville, TN 37219-2417 Email: kbishop@nasba.org

Ken L. Bishop serves as President and Chief Executive Officer of NASBA, as well as Chief Executive Officer of NASBA’s ethics arm, the NASBA Center for the Public Trust (CPT). Prior to acceding to the president and CEO role in January 2012, Mr. Bishop served as executive vice president and chief operating officer of

NASBA, where he was responsible for leading NASBA’s business and testing operations. In recent years, Mr. Bishop has been instrumental in the adoption of legislation for “CPA Mobility,” whereby CPAs increase their ability to practice throughout the U.S. without the need to be licensed separately in each state. Additionally, he played a key role in the international administration of the U.S. CPA Examination, which is now offered in Japan, Bahrain, Kuwait, Lebanon, the United Arab Emirates and Brazil. Mr. Bishop joined NASBA on January 1, 2007, as president and chief executive officer of Professional Credential Services (PCS), NASBA’s former wholly-owned subsidiary, and director of CPA Examination Operations. During his tenure as president of PCS, the company grew to provide services to more than 50 professions, both nationally and internationally. Before joining NASBA, Mr. Bishop built a successful career in the areas of state government and law enforcement, having served in roles including executive director of the Missouri State Board of Accountancy, assistant director of the Missouri Department of Public Safety, undercover narcotics officer, under-sheriff, chief of police and commander of the Missouri Major Case Squad. A Missouri native, Mr. Bishop holds a bachelor’s degree in Education from the University of Missouri Columbia, as well as a master’s degree in Criminal Justice, and he is a graduate of Harvard University’s Kennedy School of Government Executive Program. He is also a graduate of the Missouri State Highway Patrol Academy and the Federal Criminal Justice Academy. His honors include being named to Accounting Today’s Top 100 Most Influential People in Accounting, in 2011, 2012 and 2013.

1.

MARIA CALDWELL, ESQ. National Association of State Boards of Accountancy (NASBA) 150 Fourth Avenue, North, Suite 700 Phone: 615-312-3771Nashville, TN 37219-2417 Email: mcaldwell@nasba.org

Maria Caldwell, Esq., currently serves as NASBA’s Chief Legal Officer and Director of Compliance Services. She has also served as NASBA’s Director of Business Development from 2005 to early 2011, and NASBA’s General Counsel from 2003 until December 2011. Ms. Caldwell is a graduate of Duke University School

of Law and became a member of the Bar of the State of California in 1988, while working as an associate for the law firm of Gibson, Dunn & Crutcher. In 1991, Ms. Caldwell became a member of the Bar of the State of Tennessee and an associate with the law firm of Bass, Berry & Sims. Ms. Caldwell then served as General Counsel of Sirrom Capital Corporation, a public company formerly headquartered in Nashville. She joined NASBA in November of 2003 to create an in-house legal department and subsequently began the business development department. In February 2011, she was asked to head the Compliance Services department, and in January 2012, to act as Chief Legal Officer.

COLLEEN K. CONRAD, CPANational Association of State Boards of Accountancy (NASBA) 150 Fourth Avenue, North, Suite 700 Phone: 615-880-4207Nashville, TN 37219-2417 Email: cconrad@nasba.org

Colleen K. Conrad, CPA, serves as Executive Vice President and Chief Operating Officer of NASBA. She is responsible for all NASBA operations, including CPA Examination Services, licensing, continuing education, IT and risk management. Ms. Conrad also oversees governmental, international and professional relationships.

She brings more than 25 years of accounting expertise and leadership to NASBA. As a former partner in a large regional CPA firm, she practiced in the Real Estate Services Group, providing real estate, attest, tax and consulting services to clients nationwide. From 1997 to 2007, Ms. Conrad served on the Missouri Board of Accountancy, with two terms as chair. Her contributions to NASBA as a committee member and featured speaker during NASBA forums date back to 1997. Ms. Conrad’s committee involvement included membership on the Strategic Initiatives Committee, Bylaws Committee, and Regulatory Response Committee, as well as the Education Committee’s 150-Hour Task Force. A long-time member of the AICPA, Ms. Conrad recently completed a three-year term on the AICPA Council. She was a member of the AICPA Board of Examiners for 10 years, serving one term as chair, and was also a member of the AICPA/NASBA International Examination Task Force. A Kansas native, Ms. Conrad is a member of the Missouri and Tennessee Societies of CPAs and past president and member of the St. Louis Society of Women CPAs. Among her numerous honors, she was named as an AICPA/Missouri CPA Woman-to-Watch, Experienced Leader, in 2008. She earned a bachelor’s degree in accounting from Truman State University and became a licensed CPA in 1987. She recently served as chair and board member of the University’s Accounting Alumni Board.

JAMES CORLEY, CPA Arkansas State Board of Public Accountancy 101 East Capitol, Suite 450 Phone: 501-682-5333Little Rock, AR 72201 Email: james.corley@arkansas.gov

James (“Jimmy”) Corley, CPA, has served as Executive Director of the Arkansas State Board of Public Accountancy since August 2010. He has been licensed as a CPA in Arkansas since 2002. Mr. Corley graduated from the University of Central Arkansas in 2000. He began his professional career in public

accounting working for Arthur Andersen and PricewaterhouseCoopers for three and a half years. He also has six years of experience in private industry, working in the telecommunications and staffing industries. Mr. Corley is a member of the Arkansas Society of Certified Public Accountants and the Arkansas Society of Accountants, and currently serves on the NASBA Executive Directors Committee and the AICPA State Board and CPA Exam Practice Analysis Sponsor Group Committees.

2.

MARK CROCKER, CPA, CGMA Tennessee Board of Accountancy500 James Robertson Pkwy., 2nd Floor Phone: 615- 532-7397Nashville, TN 37243-1141 Email: mark.h.crocker@tn.gov

Mark Crocker, CPA, CGMA, is currently Executive Director of the Tennessee Board of Accountancy. He began his career in accounting as an auditor for the Municipal Audit Division of the State Comptroller’s Office. Subsequently, he served as a Revenue Agent for the Internal Revenue Service, Chief Financial Officer for

a travel agency, as well as Vice President of Finance and Chief Operating Officer for the Cumberland Science Museum. Mr. Crocker has worked in the public sector as Senior Manager in a local firm and has owned his own practice. He was employed as a financial analyst in the Office of the Attorney General of the State of Tennessee, Consumer Advocate Division. He served as Investigator for the Tennessee State Board of Accountancy in August of 2004 and was appointed as the Executive Director in 2008. Mr. Crocker serves on the National Association of State Boards of Accountancy (NASBA) Executive Directors Committee and the Accountancy Licensee Database/CPAverify Committee. Mr. Crocker is a graduate of Middle Tennessee State University where he earned his Bachelor of Arts degree in American History. He also earned his Master of Arts degree in American History, adding Accounting as a second undergraduate major. He has been a Certified Public Accountant in the State of Tennessee since 1992, and holds professional memberships in the Tennessee Society of Certified Public Accountants and the American Institute of Certified Public Accountants.

DORIS CUBITT, CPA South Carolina Board of Accountancy110 Centerview Drive-Kingstree Building (29210)PO Box 11329 Phone: 803-896-4559Columbia, SC 29211-1329 Email: cubittd@llr.sc.gov

Doris Cubitt, CPA, has served as Board Administrator for the South Carolina Board of Accountancy since 2001. Prior to her work at the South Carolina Department of Labor, Licensing & Regulation, she worked at

the South Carolina Department of Revenue for five years as a tax auditor and tax analyst. In addition to her position with the South Carolina Board of Accountancy, Ms. Cubitt also serves as the Board Administrator for the South Carolina Perpetual Care Cemetery Board and for the South Carolina Board of Funeral Service. She is a member of the South Carolina Association of Certified Public Accountants, and a member of the South Carolina Administrative and Regulatory Law Association (SCAARLA), where she serves on the Board. She serves on the National Association of State Boards of Accountancy (NASBA) Compliance Assurance Committee and Executive Directors Committee, as well as the Death Care Regulators Board. Ms. Cubitt graduated from the University of South Carolina Spartanburg with a Bachelor of Science in Accounting in 1993, and earned her Master of Professional Accountancy degree with a tax concentration from Clemson University in 1998. She was licensed as a CPA in May 1998.

3.

MICHAEL A. DECKERAmerican Institute of Certified Public Accountants (AICPA)Princeton South Corporate Center100 Princeton South, Ste 200 Phone: 609-671-2906Ewing, NJ 08628 Email: mdecker@aicpa.org

Michael A. Decker joined the AICPA in December 2008 and leads the psychometricians, CPAs, project managers, software developers, and professional staff responsible for the architecture, development,

production, administration, scoring, and maintenance of the Uniform CPA Examination. Prior to the AICPA, Mr. Decker was Vice President, U.S. Program Management and Operations at Prometric. He directed all program management and paper-and-pencil operations staff in support of all of Prometric’s U.S.-based test administration clients. Earlier, he led the strategic development and support of testing for healthcare industry clients, including the National Board of Medical Examiners (NBME), the Association of American Medical Colleges (AAMC), and the American Dental Association (ADA). Over the course of his career, Mr. Decker has held a number of progressively responsible positions in account management, customer support services, project management, and software development at VerticalNet, Reed Elsevier, Bell Atlantic, The Catalyst Corporation, and the Unisys Corporation. Mr. Decker holds masters’ and bachelors’ degrees in computer science and mathematics. His professional development includes American Management Association (AMA) courses in Executive Leadership and Project Management, and leadership programs of the AICPA and the Thomson Corporation.

TOM DEGROODT, CPAMissouri State Board of Accountancy3605 Missouri Blvd. Phone: 573-751-1102Jefferson City, MO 65102 Email: tom.degroodt@pr.mo.gov

Tom DeGroodt, CPA, was appointed to the position of Executive Director for the Board effective June 1, 2013. From June of 2004, until the aforementioned appointment, he was the investigator for the Board. Prior to working for the Board, Mr. DeGroodt worked as an auditor in state government for a

number of years. In addition, he has worked in the private sector as a computer programmer, small business owner, and as an accountant. Mr. DeGroodt holds an Associate of Computer Science degree from Lincoln University, a Bachelor of Science degree in Business Administration from Columbia College, and has a Master of Public Administration degree from the University of Missouri-Columbia.

4.

ERIC DINGLER, CPADeloitte Service, LLP350 S. Grand Avenue, Suite 200 Phone: 213-593-4267Los Angeles, CA 90071 Email: edingler@deloitte.com

Eric Dingler, CPA, is a Talent Development professional with 25 years of experience leading organizations through complex, large-scale changes. He joined Deloitte in 2008 as Chief Learning Officer for Deloitte Consulting. After five years, he became Director and Chief Learning Officer for Deloitte & Touche Audit. He

focuses on driving accelerated development for client service professionals through orchestrating an individual’s experiences, exposure and education against their expectations. While at Deloitte, he has led the implementation of a talent development strategy, development of marquee programs, a differentiated comprehensive learning curriculum and leaps forward in the technology and accessibility supporting the learner experience. This transformation included the implementation of Deloitte University, The Leadership Center, a physical university with a focus on leadership development. Mr. Dingler’s areas of specialization include such topics as adult learning theory, organizational and human dynamics, change-management, systems thinking, and coaching. His work emphasizes accelerating and sustaining shifts in mindsets and actions through a total ecosystem approach to building individual capabilities on a scale basis. Prior to joining Deloitte, Mr. Dingler held various leadership roles at Gap Inc., Bristol-Myers Squibb and The Coca-Cola Company. Most recently at Gap Inc, he served as Senior Director, Strategic Change and Senior Director of People and Organization Effectiveness, where he was directly responsible for learning and development, talent management, performance management, change management, and rewards and recognition. Previously, he served as Senior Director, Organizational Development, with Bristol-Myers Squibb, Princeton, New Jersey and Learning Consultant with The Coca-Cola Company in Atlanta, Georgia. In addition, he worked for 11 years in Arthur Andersen’s Business Consulting practice with a focus on consulting around the role talent plays in sustaining strategy and change. Mr. Dingler is a certified CPA. He has a bachelor’s degree in Business Administration – Accounting and Finance from the University of Pacific in Stockton, California and an M.B.A. from the University of California at Los Angeles.

IAN DINGWALL, CPAU.S. Department of Labor 122 C Street, NW, Suite 400 Washington, DC 20001

Ian Dingwall, CPA, assumed the position of the Employee Benefits Security Administration’s (EBSA) first chief accountant on July 1, 1988. He serves as EBSA’s primary adviser on accounting and auditing issues stemming from EBSA’s responsibilities under the Employee Retirement Security Act (ERISA) and the Federal

Employees’ Retirement System Act (FERSA). He was instrumental in developing and implementing the agency’s fiduciary audit plan for carrying out its responsibilities for the multi-billion dollar Federal Thrift Savings Plan. From 1969 to 1974, he was with the accounting firm of Ernst & Young, where he conducted financial audits and performed related tax services for clients. A graduate of the University of Maryland, Mr. Dingwall is a Certified Public Accountant in Maryland and a member of the American Institute of Certified Public Accountants and the Greater Washington Area Institute of CPAs. From 1974 to 1980, he was a senior accountant in the Division of Enforcement at the Securities and Exchange Commission, where he developed numerous cases involving accounting principles and auditing standards. Mr. Dingwall performed the functions of chief accountant to the Enforcement Division of the Federal Energy Regulatory Commission from 1980 to 1984. In 1984, he held the position of treasurer for Jack Kent, Inc. in Middleburg, Virginia. Previously, he was a supervisory auditor in the Special Litigation Division of the Office of the Solicitor, where he provided expert advice on accounting and auditing matters involving litigation of employee benefit plan cases. Mr. Dingwall was appointed to the AICPA’s first prestigious “Group of 100” to help shape the future role of the CPA profession. He received a “Hammer” award from former Vice President Al Gore for helping to “build a government that works better and costs less” and was listed as one of the”1997 Top 100 Most Influential People in Accounting” by the editors of Accounting Today. He is the recipient of the AICPA’s 2007 Outstanding CPA in Federal Government Award for his contributions to increase efficiency and effectiveness of government organizations and to the growth and enhancement of the profession. He presently serves as an observer “with privileges of the floor” to the Public Company Accounting Oversight Board’s Standing Advisory Group.

5.

OFELIA DURAN Colorado State Board of Accountancy1560 Broadway, Suite 1350 Phone: 303-894-7794Denver, CO 80202 Email: ofelia.duran@state.co.us

Ofelia Duran is the Program Director for Colorado’s Board of Accountancy, Offices of Barber and Cosmetology Licensure, Boxing, and Outfitters Registration. She has served in this capacity since June 2008. Prior to this role, she was the Assistant Director for the Office of Expedited Settlement, a centralized unit serving eight

different professions in settling pending disciplinary cases. Ms. Duran has served on NASBA’s Accountancy Licensee Database Task Force and currently serves on the Executive Directors Committee. She has extensive experience in regulatory matters and received her BSBA Degree in Business Management from the University of Colorado in 1999.

KIMBERLY FARACE, M.B.A. Prometric1501 South Clinton Street Canton Crossing Tower Phone: 443-455-6404Baltimore, MD 21224 Email: Kimberly.Farace@prometric.com

Kimberly Farace is a team leader for Client Services and Sales at Prometric. She is the account owner for the CPA Program and IQEX Program, and works directly with NASBA and the AICPA in administration of the

Uniform CPA Examination. Since starting at Prometric in November of 2000, she has worked with several key clients, including ETS International and Cisco. Prior to joining Prometric, she served as a financial analyst at Maryland General Physics in Columbia, MD, and as an analyst at Abt Associates in Bethesda, MD. Ms. Farace holds a Bachelor of Arts degree from Frostburg State University in Frostburg, MD, where she majored in international relations and economics. She also holds an M.B.A. from Loyola University Maryland’s Sellinger School of Business and Management in Baltimore, MD where she concentrated on international business.

CHERYL FARRARNational Association of State Boards of Accountancy (NASBA) 150 Fourth Avenue, North, Suite 700 Phone: 615-564-2140Nashville, TN 37219-2417 Email: cfarrar@nasba.org

Prior to joining NASBA as Chief Information Officer, Ms. Farrar served as an IT management consultant with The Kelso Group, a Nashville-based technology management consulting firm. Prior to The Kelso Group, she served as Senior Vice President for Strategic Sourcing with Universal Music Group’s global IT organization.

As Senior Vice President, Ms. Farrar was responsible for establishing the overall service provider and IT sourcing direction and management for the organization, and for providing leadership in the vision, planning, designing, implementation and maintenance of various critical information systems. A graduate of Pierce College with a Liberal Arts associate’s degree and The University of Phoenix with a bachelor’s degree in Business Management and Administration, Ms. Farrar is also the founder of the Spirit Oaks Ranch Equine Therapeutic Center (Los Angeles, CA) and White Fawn Farm Equine Therapeutic Center (Nashville, TN). Both centers specialize in providing equine therapeutic services to children with disabilities.

6.

RUSS FRIEDEWALD Illinois Board of Examiners100 Trade Centre Drive, Suite 403 Phone: 217-531-0929Champaign, IL 61820-7233 Email: rfriedewald@ilboa.org

Russ Friedewald is the Executive Director of the Illinois Board of Examines, located in Champaign, IL. The Board of Examiners is responsible for reviewing and approving candidates to sit for the CPA examinations; approximately 5000 examination sections are administered to Illinois candidates annually. Prior to his

appointment to the Board of Examiners, Mr. Friedewald was the Director of Licensing for the Illinois Department of Professional Regulation, having been appointed by, then Governor, James Thompson. A position he held for 16 years, the Director of Licensing is responsible for overseeing the licensing, testing, and records maintenance of approximately 55 professions and over 150 professional categories, totaling more than one million license records. In 2000, Governor Mel Carnahan of Missouri presented Mr. Friedewald with a Proclamation from the State of Missouri for his assistance to the Missouri Department of Professional Registration, and the U.S. Department of Justice acknowledged his assistance with the Federal Witness Protection Program. He currently sits on the NASBA Executive Directors Committee and the AICPA Board of Examiners. Mr. Friedewald received a degree in Education from Southeast Missouri State University and completed the Duke University Strategic Leadership for State Executives program in 1987.

REBECCA GEBHARDTNational Association of State Boards of Accountancy (NASBA) 150 Fourth Avenue, North, Suite 700 Phone: 615-564-2134Nashville, TN 37219-2417 Email: rgebhardt@nasba.org

Rebecca Gebhardt is the Manager of Compliance Services at the National Association of State Boards of Accountancy (NASBA). She oversees several programs within NASBA’s Compliance Services department, including the Accountancy Licensee Database (ALD), CPAverify.org, the Accountancy Licensing Library

(ALL), CPEtracking and Learning Market. She has worked at NASBA for 10 years, serving in various capacities throughout the organization including Manager of Licensee Services and Business Development Manager. Rebecca has extensive professional experience working in communications, product management and business operations. Some of her previous work experience includes marketing and public relations for Bibb, Lott & Fryer Marketing, where she specialized in neighborhood banking and community economic development. Rebecca also served as a publishing manager for Jostens Printing and Publishing. In 2001, Rebecca relocated to Nashville where she became responsible for global advertising for the market leader in IT training and certification software at the time, Transcender, Inc., which was later purchased by Kaplan, Inc. Rebecca later joined NASBA to put her training and certification background to use supporting state boards with regulation of the CPA designation. Rebecca earned her bachelor’s degree in Mass Communication and her M.A. in Corporate Communication from Austin Peay State University.

STACEY L. GROOMS, ESQ.National Association of State Boards of Accountancy (NASBA)150 Fourth Avenue North, Suite 700 Phone: 615-453-5048Nashville, TN 37219-2417 Email: sgrooms@nasba.org

Stacey L. Grooms, Esq., serves as NASBA’s Manager of Regulatory Affairs. After becoming licensed in Alabama in 1996, she was a plaintiff personal injury litigator with the firm of Douglas J. Fees & Associates in Huntsville, Alabama. Upon moving to Tennessee, she obtained her Tennessee license and provided general

practice services with the firm of Harwell & Plant in Lawrenceburg, Tennessee. In 2002, Ms. Grooms moved to the Nashville area and became a regulatory attorney for the Department of Commerce and Insurance, representing several different boards in the Regulatory Boards Department, including the Tennessee State Board of Accountancy. She joined NASBA in 2006 as Manager of Regulatory Affairs, for which her primary responsibilities include research and tracking changes in the statutes and regulations of the boards of accountancy. Ms. Grooms is a graduate of University of Alabama School of Law.

7.

PATRICIA L. HARTMANNational Association of State Boards of Accountancy (NASBA)150 Fourth Avenue North, Suite 700 Phone: 615-880-4273Nashville, TN 37219-2417 Email: phartman@nasba.org

Patricia L. Hartman has been with NASBA since 2000. In her capacity as Director of Client Services, she oversees the administration and operations of CPA Examination Services, the National Candidate Database, CPA Licensing Services, and the Guam Testing Center. Ms. Hartman’s prior experience includes five years

with the U.S. Postal Service as a human resources specialist, four years with Lockheed Martin as a tour supervisor for a Remote Encoding Center, and nine years in the U.S. Army as an intelligence analyst and administrative specialist. Ms. Hartman serves as a member of NASBA’s CPA Examination Administration Committee, Executive Directors Committee, and International Qualifications Appraisal Board, alongside numerous state board members and executive directors.

BRENTNI HENDERSON-KINGNational Association of State Boards of Accountancy (NASBA)150 Fourth Avenue North, Suite 700 Phone: 615-312-3801Nashville, TN 37219-2417 Email: bhendersonking@nasba.org

Brentni Henderson-King serves as manager of NASBA’s International Evaluation Services. She is responsible for developing business and processes for evaluating international education for candidates and oversees day-to-day operations. In this role, Ms. Henderson-King has developed the international evaluation

services department, trained evaluators, streamlined operational processes, and provided support for accounting boards and review course providers seeking information and guidance regarding international education. Prior to joining NASBA, Ms. Henderson-King served as international credential evaluator at Western Kentucky University (WKU). Her background includes international education evaluations for admissions at the post-secondary level, and third-party vendors, such as English as a Second Language and educational pathway programs. In addition, she served as a faculty member of the Leadership Studies department at WKU. Ms. Henderson-King earned her undergraduate degree in Business Management, and her MBA and Master of Arts in Administrative Dynamics from Western Kentucky University (Bowling Green, KY).

PAMELA IVEY Wyoming Board of Certified Public Accountants325 West 18th Street, Ste. 4 Phone: 307-777-7551Cheyenne, WY 82002 Email: Pamela.ivey@wyo.gov

Pamela Ivey is the Executive Director of the Wyoming Board of Certified Public Accountants, a position she has held for over three years. Ms. Ivey is a past-member of NASBA’s Communications, Outreach and Relations Committee and serves currently on the Executive Directors Committee. During her over 25-year

career in financial services and banking, she specialized in service delivery and sales and bank operations. She held various positions including Branch Manager in several locations, Residential Mortgage Lender, and Chief Operating Officer of the largest credit union in Wyoming. She also served as Vice President of the Greater Cheyenne Chamber of Commerce. Ms. Ivey earned her B.S. in Finance from the University of Wyoming. She is a graduate of Leadership Cheyenne and Leadership Wyoming, local leadership training programs for community and political service. She earned a certificate from the Institute of Organizational Management, a five-year comprehensive association and chamber of commerce management training program offered through the U.S. Chamber of Commerce, and she participated in a three-year intensive management training school offered through the Credit Union National Association (CUNA).

8.

WADE JEWELL Virginia Board of Accountancy9960 Mayland Drive, Suite 402 Phone: 804-367-8540Henrico, Virginia 23233 Email: Wade.Jewell@boa.virginia.gov

As the Executive Director of the Virginia Board of Accountancy, Wade Jewell is responsible for providing regulatory enforcement, policy development, and coordination of services to constituents and stakeholders, budgeting, financial and operational management, and leadership to the organization. He has served

the Virginia State government since 1988. His early experience includes fifteen years with the Department of Corrections (to include positions in Financial Systems, Financial Reporting, and Budget Management), and shorter financial and operational management stints with the Department of Social Services, the Department of Transportation, and J. Sargeant Reynolds Community College. Just prior to joining the Board of Accountancy, Mr. Jewell spent almost three years with the State Compensation Board, leaving as the Assistant Executive Secretary with responsibilities for the Budget, Finance, Auditing, and Reporting & Policy Sections of the agency. Mr. Jewell holds a B.S. in Business Administration (Accounting) with honors from the University of Richmond. He is a 2004 graduate of the VDOT Executive Institute, a 2005 graduate of the Commonwealth Management Institute, a 2006 graduate of the Advanced Management Institute, and a 2008 graduate of the Virginia Executive Institute. He is a former board member and treasurer of the Virginia Executive Institute Alumni Association. Mr. Jewell currently serves on NASBA’s Executive Directors Committee and the ALD/CPAverify Committee.

CARLOS E. JOHNSON, CPA, ED.D.Oklahoma Accountancy Board3124 Lamp Post Lane Phone: 405-642-6235 Oklahoma City, OK 73120-5619 Email: johnson@okccpa.com

Carlos E. Johnson, CPA, Ed. D., of Oklahoma City, Oklahoma, serves as chair of the National Association of State Boards of Accountancy (NASBA) Board of Directors for 2013-14. Previously, Mr. Johnson served as vice chair, director-at-large and southwest regional director of the NASBA Board. He is the chair of NASBA’s

newly established Leadership Development Group and former chair of NASBA’s Uniform Accountancy Act (UAA) Committee, Audit Committee, State Board Relevance and Effectiveness Committee, Legislative Support Committee and Substantial Equivalency Strike Force (Mobility Task Force). Additionally, Mr. Johnson is a former member of NASBA’s Administration & Finance, Regulatory Structures and Relations with Member Boards Committees. For 10 years, he served on the Oklahoma Accountancy Board, contributing three terms as chair and two terms as vice chair. Mr. Johnson currently serves as president of Carlos E. Johnson, CPA, PLLC, having retired from his position as senior investment banker with BOSC, Inc., a subsidiary of BOK Financial Corp. Additionally, he was a 24-year partner with KPMG, LLP, partner with the firm of Horne & Co. of Ada, Oklahoma, and Dean of the School of Business of East Central University of Ada, Oklahoma.

9.

JOHN W. JOHNSONNational Association of State Boards of Accountancy (NASBA)150 Fourth Avenue North, Suite 700 Phone: 615-880-4232Nashville, TN 37219-2417 Email: Jjohnson@nasba.org

John W. Johnson is NASBA’s Director of Legislative and Governmental Affairs. Prior to joining NASBA, Mr. Johnson served as Director of Governmental Affairs for the Florida Institute of Certified Public Accountants (FICPA), where he was a registered lobbyist, responsible for the administration of the FICPA’s government

relations program (this included serving as staff liaison to the Florida State Tax Section, the State Legislative Policy Committee, State and Local Government Section, and the Common Interest Realty Association Section). A graduate of Florida State University, with degrees in Accounting and Political Science, Mr. Johnson became involved in government at a young age as an intern for former Florida State Senator, Van B. Poole. Upon graduating from FSU, he began his career as an auditor for the Division of Pari-Mutuel Wagering for the Department of Business and Professional Regulation, where he served for 12 years, and continued to move up through the ranks to Tax Audit Supervisor, Audit Administrator, Chief of Operations, Chief of Audit, and finally, Deputy Director. In 2002, he became Executive Director for the Florida Board of Accountancy and served in that capacity for four years.

RICHARD E. JONES, CPA, CGMAWashington Society of CPAs902 140th Avenue, NE Phone: 425-586-1124Bellevue, WA 98005 Email: rjones@wscpa.org

Richard (“Rich”) E. Jones, CPA, CGMA is the President & CEO of the Washington Society of Certified Public Accountants, headquartered in Bellevue, Washington. The WSCPA has approximately 9,600 members and is the only organization in the State of Washington dedicated to serving the professional needs of

CPAs. Mr. Jones was named to this position in January 2005. Prior to assuming his leadership role at the WSCPA, he was an active member of the accounting profession, having served with Ernst & Young for over 33 years in their San Francisco, San Jose and Seattle offices. When he retired from Ernst & Young in 2004, he was Director of Tax for their Pacific Northwest offices, a position held since relocating to Seattle in 1989. Mr. Jones is an honors graduate of the University of California at Berkeley with a B.S in Accounting and attended the E&Y Executive Development Program, Kellogg School of Management, at Northwestern University. He is active in many civic and professional organizations, including the Fred Hutchinson Cancer Research Center (1995-2010)—Board of Directors, Treasurer; the Seattle Cancer Care Alliance (1998-Present)— Past Chair of Board, Chair of Integrity Committee; UW Medicine (2006-Present)—Vice Chair of Board, Chair of Compliance Committee; the Pacific Science Center (1996-2004)—Board of Directors, Treasurer; the Washington CPA Foundation (2005-2010)—Executive Director; Washington CPA/PAC (2005-Present);the CPA Society Executives Association (2006-Present)—Board of Directors, Past President; and the Accounting Careers Awareness Program (2005-2010)—Board of Directors. Mr. Jones is a licensed CPA in California and Washington and is a member of the California Society of CPAs, the Washington Society of CPAs, and the American Institute of CPAs. He has served on the Uniform Accountancy Act Committee and the Peer Review Board of the AICPA and on its Horizons 2025 Task Force.

10.

NICOLE KASIN, M.B.A. South Dakota Board of Accountancy 301 E. 14th Street, Suite 200 Phone: 605-367-5770 Sioux Falls, SC 57104 Email: Nicole.kasin@state.sd.us

Nicole Kasin is the Executive Director of the South Dakota Board of Accountancy, a position she has held since May 2006. Prior to her position with the Board, she was a Tax Program Representative with the South Dakota Department of Labor and Regulation. Ms. Kasin is the past chair of NASBA’s Executive

Directors Committee and is a former member of NASBA’s Communications, Outreach and Relations Committee, and Enforcement Resource Committee. Ms. Kasin received her B.A. and M.B.A. degrees in Business Administration from the University of Sioux Falls.

JESSICA LUTTRULL, CPANational Association of State Boards of Accountancy (NASBA)150 Fourth Avenue, North, Suite 700 Phone: 615-880-4245Nashville, TN 37219-2417 Email: jluttrull@nasba.org Jessica Luttrull, CPA, currently serves as NASBA’s Manager of the National Registry of CPE Sponsors. Ms. Luttrull graduated from the University of Tennessee (Knoxville) summa cum laude and became a Certified Public Accountant in the State of Tennessee in 1994. She joined NASBA as the Manager of the National

Registry in June 2010. Her primary responsibilities include the day-to-day operations of the National Registry of CPE Sponsors, which is a program to recognize organizations that provide continuing professional education (CPE) programs in accordance with nationally recognized standards. Ms. Luttrull also serves as the staff liaison to NASBA’s CPE Committee. Prior to joining NASBA, Ms. Luttrull spent her entire career with Ernst & Young in Nashville in the Company’s audit practice where she led audit and other transaction efforts with public and private companies in a variety of industries, including consumer products, hospitality, manufacturing, retail, healthcare and venture capital.

LEE D. MARTIN Internal Revenue ServiceSE:OPR, Room 7238/IR1111 Constitution Avenue NW Phone: 202-317-6375 Washington, DC 20224 Email: lee.d.martin@irs.gov

Lee D. Martin is the Deputy Director, Office of Professional Responsibility, Internal Revenue Service. Prior to this position, he was the Director, Enterprise Networks Operations in the Information Technology

organization. In that role, he was responsible for providing executive leadership over the operations and maintenance of the enterprise network infrastructure, while working closely with IT executives to ensure delivery of a world-class converged network and high quality services. Prior to joining the IRS, Mr. Martin held management positions with AT&T as Assistant Vice President-Project Management, Vice President-Information Systems/Chief Technologist for SBC Interactive - SmartPages.com, an on-line Directory Service, and Regional VP - Frame/ATM Provisioning Service Operations where he was responsible for ordering, design, provisioning, maintenance and repair of high-speed data services across SBC’s territory. He also has an extensive background in billing and collections with SBC, where he played a key strategic role at TelCel in Mexico City and Cable Northwest in Preston, England. Mr. Martin has an M.B.A. from Webster University in St. Louis and a Bachelor of Science Degree with dual majors in Math and Chemistry from Friends University. He is a Certified Project Management Professional and Six Sigma Green Belt. He was a recipient of the 2006 AT&T Excellence in Project Management Achievement Award for Leadership. Mr. Martin has received two NOVA Achievement Awards from Southwestern Bell for innovations to the business. He is a graduate of the Summer2008 Candidate Development Program.

11.

JOE MASLOTT, CPAAmerican Institute of Certified Public Accountants (AICPA)Princeton South Corporate Center100 Princeton South, Ste 200 Phone: 212-596-6200Ewing, NJ 08628 Email: jmaslott@aicpa.org

Joseph Maslott, CPA, is the Senior Technical Manager for Test Development with the AICPA Examinations team, located in Ewing, NJ, since October 2006. Mr. Maslott has fifteen years of accounting experience as

a CPA and has brought his expertise to the test development team at AICPA. He began his career at PriceWaterhouseCoopers in Toledo, Ohio, and then joined AT&T World Headquarters and E*TRADE Financial in management positions in accounting. As a lead CPA on the AICPA Examinations team, he has served in various roles including Staff Liaison for the AUD subcommittee and business owner of Simulation Development and Multiple Choice Question process reengineering. Mr. Maslott is currently the business owner for the upcoming practice analysis, a research project designed to document the scope of entry-level practice as well as serve as the foundation for the Exam’s validity and legal defensibility. Mr. Maslott earned his BS in Accounting from Bowling Green State University in Ohio in 1999.

DONALD A. MILLS, CPA, CFE, CFFTennessee Board of Accountancy500 James Robertson Pkwy., 2nd Floor Phone: 615.943.7040Nashville, TN 37243-1141 Email: D.A.Mills@tn.gov

Donald A. Mills, CPA, has been an Investigator for the Tennessee State Board of Accountancy since 2009. Prior to that, he was the Audit Manager for the Hamilton County Department of Education. He has also worked in public accounting and was a senior auditor with the Tennessee Division of Municipal Audit. Mr.

Mills is a graduate of the University of Tennessee at Knoxville. He is a Certified Public Accountant, a Certified Fraud Examiner, and holds the Certification in Financial Forensics from the American Institute of Certified Public Accountants. Mr. Mills is a member of the Tennessee Society of CPAs, the American Institute of CPAs, the Association of Certified Fraud Examiners, the Forensic CPA Society, and the Antique Automobile Club of America.

RANDALL A. ROSS, CPA, M.B.A.Oklahoma Accountancy Board201 NW 63rd Street, Suite 210 Phone: 405-317-1244 Oklahoma City, OK 3116 Email: rross@oab.ok.gov

Randall (“Randy”) Ross, CPA, is currently the Executive Director of the Oklahoma Accountancy Board. He received both his B.S. in Accounting and his M.B.A. from the University of Central Oklahoma while earning All-American status in wrestling. His career has comprised a broad background of public, private, and

governmental accounting and work experience. He served as Director of Business Taxes at the Oklahoma Tax Commission, and Corporate Controller for an international manufacturing concern, among positions in public accounting during his career. Mr. Ross has received numerous awards including National Administrator of the Year in 1995, Outstanding CPA in Industry in Oklahoma in 2006, Mayor of the Year in Oklahoma for cities over 5,000 in 2011, and most recently, he was honored as a Distinguished Former Student by the University of Central Oklahoma.

12.

DAVID N. SANFORD, CPA.CITP Guam Board of Accountancy 335 South Marine Corps Dr, Ste 101 Phone: 671-647-0813 x102 Tamuning, Guam 9691 Email: execdir@guamboa.org daves@stgguam.com Dave N. Sanford, CPA.CITP, has served as the Executive Director of the Guam Board of Accountancy since 2004, under an administrative services contract between Sanford Technology Group LLC (STG) and the

Board. He has lived and worked in Guam, Saipan and Micronesia since 1978, and has worked throughout the Far East in public accounting. He subsequently served as a financial controller for Duty Free Shoppers Ltd (DFS) in Saipan and Guam, and was also appointed as VP-Finance for the DFS credit card subsidiary, formed in Hong Kong in 1982. After relocating the DFS corporate accounting office from Honolulu to San Francisco in late 1984, Mr. Sanford returned to Guam and subsequently formed an integrated computer services company with his spouse, Toni, in 1986. Today, STG provides payroll processing and IT services throughout Guam, CNMI and Micronesia. Augmenting Dave’s professional endeavors are his memberships and service with various community and business organizations, including his parish financial council, Guam and CNMI tax commissions, and chambers of commerce. In service to the CPA profession, he has participated in all aspects of the Guam Society of CPAs administration since 1980, and served as a member of the AICPA Governing Council from 2003 through 2012.

RICHARD C. SWEENEY, CPA Washington State Board of AccountancyP. O. Box 9131 Phone: 360- 586-0163Olympia, WA 98507-9131 Email: Ricks@cpaboard.wa.gov

Richard C. Sweeney, CPA, was appointed Executive Director of the Washington State Board of Accountancy in 2005. Previously, he served as the Director for Regulatory Affairs for the Washington State Auditor. His responsibilities included monitoring CPA contractors providing services to state and local government, and

monitoring developments in accounting and auditing oversight by the Washington State Board of Accountancy, the General Accountability Office, and the Public Company Accounting Oversight Board. Mr. Sweeney also maintained a private consulting business. As a private consultant, his activities included providing litigation support for attorneys in CPA malpractice defense cases, and consulting services to CPA firms and other enterprises. He also developed and delivered tailored training programs for numerous professional and business organizations. Mr. Sweeney is licensed to practice public accounting in Washington State. He is a member of the AICPA. Mr. Sweeney served on NASBA’s Executive Directors Committee and is a former chair of that Committee. He has also previously served on the Accountancy Licensee Database (ALD) Task Force. He is a current member of NASBA’s Legislative Support Committee (the 2012-2013 successor to the former Legislative Support and State Board Relevance and Effectiveness Committees) and NASBA’s Awards Committee. Mr. Sweeney is the 2013 recipient of the Lorraine P. Sachs Standard of Excellence Award.

FRANK X. TRAINOR, ESQ.North Carolina State Board of CPA Examiners1101 Oberlin Road, Suite 104 PO Box 12827 Phone: 919-715-9185Raleigh, NC 27605-2827 Email: ftrainor@nccpaboard.gov

Frank X. Trainor, Esq., has been the staff attorney for the North Carolina State Board of CPA Examiners since 2011. He provides general legal advice to the Board and also is in charge of the Board’s Professional

Standards section which focuses on the discipline of CPAs in the State of North Carolina and enforcement against the unauthorized use of the CPA title in the State. Prior to his current position, Mr. Trainor was in private practice focusing on administrative law. He represented other occupational licensing boards as well as numerous licensees facing disciplinary action. He earned his bachelor’s degree at the University of North Carolina in Chapel Hill and his J.D. at Tulane University.

13.

1.

ALABAMA STATE BOARD OF PUBLIC ACCOUNTANCY

Budget Constraints Alabama’s Governor lifted the freeze on merit pay raises beginning January 1, 2014. The freeze had been in place since January 1, 2009.

Board Staff Changes At the November 2013 board meeting, the Alabama Board approved the following personnel action: Created a temporary part-time accountant position to assist the board with the implementation of the Alabama Immigration Law, which requires licensing boards to verify citizenship or lawful presence in the United States for individuals renewing a professional license.

Technology Changes The Board’s website underwent a revamping during the summer of 2013, to improve the aesthetics and make it more user-friendly. A new web application was also added to enable board members to access board materials electronically. Board staff continue to work toward making Board disciplinary actions available on the Board’s website.

On-line License Renewals. The Board discontinued mailing paper registration forms, beginning with fiscal year October 1, 2013 – September 30, 2014. All licensees were notified by mail, followed by three email reminders to register on-line for the 2013-2014 registration period. On-line license renewals for the first quarter increased to 85% for 2013-2014 registration period, as opposed to about 30% for the previous years.

Disciplinary and Enforcement Activities including SEC and IG Referrals The Alabama Board held Administrative Hearings on January 31, 2014 and took the following disciplinary actions:

- Revoked 21 CPA certificates and one firm for failure to register and renew their annual licenses. In addition, 52 CPA certificates were revoked for failure to respond to the Board’s inquiries related to the Alabama Immigration Law, a violation of Board Rules and Statute.

ALASKA STATE BOARD OF PUBLIC ACCOUNTANCY The Board will have one long-term Board member (Kathleen Thompson, CPA) term out as of 3/1/14. New Board member (Leslie Schmitz, CPA) has already been appointed, effective 3/1/14.

HB302 was introduced. This bill contains clean-up and clarifying language.

Budget Issues - The Board continues to encounter issues with obtaining approval for all requested Board/staff travel.

- The Division continues to review/work on third-party reimbursements; currently, there is a cap on the amount of third-party reimbursements that can be accepted for all boards within the Division. **Third-party reimbursements are trips that are paid for by outside organizations; State policy requires that the State reimburse the staff or Board member and then ‘bill’ the outside organization after the trip. At this time, the Boards are required to estimate a full fiscal year ahead and then the allowable total is shared for all professions within the Division (currently capped at $20k). - HB187 was introduced by the Division. This bill intends to have the general fund pay $1.7 million in investigative (personnel) costs. This change would reduce the amount of costs being charged directly to boards within the Division.

2.

ARIZONA STATE BOARD OF ACCOUNTANCY

Statutes and RulesThe Arizona Board of Accountancy passed Laws 2013, Ch. 136 (HB 2260), which was effective September 13, 2013. The primary purpose of the legislation was to better organize the statutes in our Title to be more clear and readable. For instance, we have three separate statutes dealing with certification that have now been drafted in one section. We also had references to fees throughout the title, which are now all contained in a single statute. The legislation creates reinstatement requirements for cancelled (A.R.S. §32-730.02), expired (A.R.S. §32-730.03), retired (A.R.S. §32-730.04), relinquished (A.R.S. §32-741.04), and revoked (A.R.S. §32-741.03) certificates. The Board also created a retirement status and authorized the adoption of MRAs. The Board also reduced the registration fees for retired and inactive status from $300 every two years to $50 and $150 respectively.

The Board also adopted new rules that became effective February 4, 2014. The rules were updated to address issues due to the passage of Laws 2013, Ch. 136, HB 2260, effective September 13, 2013; to address issues delineated in the Board’s 2008 Five Year Rule Review, which could not be addressed sooner due to a moratorium on rule making; to ensure that the rules reflect the Board’s operating practice; and to provide technical, clarifying, and conforming changes to improve the organization and readability of the rules for the public. Among many things, the rules provide that reinstatement applicants must provide evidence of completed CPE (course outlines and certificates of completion) and the Board now allows for CPE credit in half-hour increments for periods of not less than one hour, whereas CPE is currently only credited in whole hours.

Fees and Fines As a part of its rule package, the Board increased its late fee for registrations from $25 to $50.

International Professionals Seeking Recognition/Mutual Recognition Agreements As part of Laws 2013, Ch. 136, HB 2260, the Board has now adopted all NASBA approved mutual recognition agreements and will accept IQEX in lieu of the Uniform CPA exam.

Sunset Legislation or Reviews The Board will be undergoing a sunset review in the summer of 2014.

Retired Status Approvals

3.

ARKANSAS STATE BOARD OF PUBLIC ACCOUNTANCY

Rule Changes - CPA exam candidates can now sit with a bachelor’s degree (150 hours still required for licensure) - New retired status created for those CPAs who sign an affidavit stating that they are no longer working in any capacity. New status relieves the CPA of any CPE reporting and annual registration.

Proposed Rule Change- Currently, we require four (4) hours of ethics every three years; new rule will require one (1) of the four (4) hours to be on state board laws and rules.

Operations- Changed license database from GL Suite to Access based application.- Scanned all licensee files for better security/ease of access to information.

CALIFORNIA BOARD OF ACCOUNTANCY

Mobility Effective July 1, 2013, California implemented a no-fee and no-notice practice privilege (mobility) program. One public protection element of the program is that California is required to post a list of all CPAs who were disciplined by the SEC and PCAOB on its website. Additionally, the disciplined CPA is required to request approval from the CBA prior to practicing in California under mobility. CBA staff contacts the CPAs and informs them of this requirement via regular mail. Please visit the CBA website www.cba.ca.gov to search for CPAs listed from your jurisdiction. Mobility Stakeholders GroupIn 2012, California passed legislation that allowed mobility for California. The same legislation created the Mobility Stakeholder Group (MSG) for the purpose of considering whether the provisions of California’s practice privilege law are consistent with the CBA’s duty to protect the public, and whether the provisions of practice privilege law satisfy the objectives of stakeholders of the accounting profession in California, including consumers. The members of the MSG have been appointed and it will hold its first meeting in March 2014. Peer Review ReportingWhen California’s peer review requirement first took effect in January 2010, the CBA established a three-year phase-in period for reporting. This phase-in period began in July 1, 2011 and was completed July 1, 2013. This initial phase-in period was based on the last two digits of a licensee’s license number. The CBA revised the reporting requirement to now occur at the time of license renewal, which began January 1, 2014. FingerprintingBeginning with licenses that expire after December 31, 2013, all licensees renewing their license in an active status who have not previously submitted fingerprints as a condition for initial licensure or for whom no electronic record of the licensee’s fingerprints exists with the California Department of Justice (DOJ) must submit fingerprints for the purpose of having a State and federal criminal offender record background check. Continued Exploration of California’s Attest Experience Requirement and Allowing Academia as Qualifying Experience for CPA LicensureFor a significant portion of 2013, the CBA established a Taskforce (known as the Taskforce to Examine Experience for CPA Licensure) that explored California’s experience requirement for CPA licensure. As a result of the Taskforce’s work, for the upcoming year, the CBA will be undertaking a research project regarding the attest experience requirement and moving forward with sponsoring legislation to allow for experience earned in academia to qualify toward California’s general experience requirement.

continues

4.

CALIFORNIA BOARD OF ACCOUNTANCY (continued)

The research project associated with the continued exploration of California’s attest experience requirement will entail performing a survey of California’s licensees. The CBA will be engaging the services of a consultant to aid in the data collection and preparing a final report. Additionally, the CBA will be surveying other state boards of accountancy to obtain relevant data and information. As for allowing academia experience to qualify, the Taskforce recommended that the CBA explore allowing qualifying academia experience, as it believed it could aid in bridging the gap between theory and practice, and benefit both the students and accounting profession. The CBA adopted the Taskforce’s recommendation to allow for experience earned in academia to qualify for general accounting experience. For the upcoming year, the CBA will be sponsoring legislation to amend California’s Accountancy Act and will begin discussion on establishing a framework for how academia experience will qualify.

COLORADO STATE BOARD OF ACCOUNTANCY

Review of the past YearThe Board adopted new rules on March 20, 2013, and they became effective on July 1, 2013, except for the CPE Chapter 7, which became effective, January 1, 2014, to line up with the start of the next CPE reporting period.

Amendments were made to all twelve chapters. Some had substantive changes and others did not.

Challenges2013 Renewal:- The CPA licenses in Colorado expired on November 30, 2013, one month before the end of the CPE reporting period (December 31, 2013). The Board office heard concerns about this shift and it caused some confusion because the renewal attestation contained language that said, “(1) I have completed all Required CPE for the Reporting Period; OR (2) I will complete all Required CPE by the end of the Reporting Period (December 31, 2013). I understand that my compliance with the continuing education requirements is subject to an audit by the Board.”

- During the 2013 renewal, the CPAs were discouraged from changing the status of the license until the renewal was complete. Change of status requires a separate notice or application and fee (inactive-no fee or retired-fee).

Future Initiates/Outreach- Since early February, the division staff and IT staff have been in the initial stages of discovering/testing the file layout for ALD implementation.

- Given the nature of the rule changes and the fast approaching June 30, 2015 deadline for the 150 change, there are plenty of outreach opportunities that will be explored to inform the various stakeholders about the upcoming changes, and to reinforce the changes/expectations of the licensed stakeholder group.

COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

No update has been provided for Commonwealth of the Northern Mariana Islands.

CONNECTICUT STATE BOARD OF ACCOUNTANCY

No update has been provided for Connecticut.

DELAWARE STATE BOARD OF ACCOUNTANCY

No update has been provided for Delaware.

5.

DISTRICT OF COLUMBIA BOARD OF ACCOUNTANCY

It is an exciting time for the District of Columbia Board of Accountancy. The Board will be tackling several major projects this year. At the top of the list, the Board is working to make the District of Columbia “a hub” for examination and licensure of foreign nationals. We believe this is an important goal, as expanding licensure in this way promotes higher standards, leading to a higher quality of public accounting services, and protection of the public, for both our citizens and citizens in other nations. We are working with local institutions of higher education, including Howard University, to create a local chapter of the Student Center for Public Trust. The Board will also be working this year to revise and update its statutes and regulations to bring them in line with current practices. Administratively, our operations continue to flow smoothly. We continue to innovate and improve our electronic application and licensing platform. The Board looks forward to a productive year in the District of Columbia, and will continue to tackle any challenges presented in the name of protecting the public.

FLORIDA BOARD OF ACCOUNTANCY

The Florida Board of Accountancy has begun promulgating rules to implement peer review as a condition for firm licensure, effective for the 2015 renewal cycle. In July of 2013, the Board began conducting level one background checks for those applicants applying for licensure. Legislation has been introduced in the 2014 session to expand this requirement for individuals applying to sit for the CPA examination.

The Board’s staff was expanded to include three administrative support positions, two additional full time investigators, bringing the total to three investigators, and for the first time, two attorneys dedicated to prosecuting accountancy cases.

In an effort to decrease surplus cash; the Board reduced individual renewal fees for the 2013 and 2014 renewal cycles. For the fiscal year ending June 30, 2014, the Board was appropriated $100,000 for an advertising program to combat unlicensed activity; up from $60,000 in the previous fiscal year.

In August of 2013, the Board, through the Clay Ford Scholarship Program, awarded $192,000 in scholarships to minorities seeking to complete education for licensure as certified public accountants. The Board’s appropriation for scholarships was increased from $100,000 in 2012 to $200,000 for the budget which took effect July 1, 2013. Governor Rick Scott has released his proposed budget for the next year and again included $200,000 for the Board’s scholarship program.

For calendar year 2014, we will be working to redesign our website and are looking to create at least one informational video.

GEORGIA STATE BOARD OF ACCOUNTANCY

No update has been provided for Georgia.

GUAM BOARD OF ACCOUNTANCY

The Guam Board of Accountancy (the Board) has drafted legislation to adopt mobility and to update the Guam Accountancy Act and rules for other UAA changes recommended over the last 7-8 years. We will submit this draft to our legislative oversight committee in March and we expect this legislation to pass by the end of 2014.

The Board is slowly recuperating from the loss of over 80% of the Japanese candidates sitting in the Guam Computer Test Center (GCTC), which is celebrating its 10th anniversary in April 2014, having administered the very first computer-based CPA exam in April 2004 on Guam, “where America’s day begins”! We are seeing increased numbers of Chinese candidates from mainland China, as well as Hong Kong and Taiwan, but the visa process for the mainland Chinese is lengthy and costly, so we are still left with a GCTC volume of candidates about equal to our 2004-2005 volume.

continues

6.

GUAM BOARD OF ACCOUNTANCY (continued)

Even so, the Board has accumulated a surplus in excess of $1mm and is pushing a plan to implement the Guam Accountancy Endowment Fund, as an “agency-advised” endowment fund with the University of Guam Foundation. As an agency-advised endowment, the Board is able to act as an advisor with oversight of and participation in the programs conducted, and can be reimbursed with endowment funds for activities conducted on behalf of the University of Guam (UOG) Accounting program. The goal of this endowment is to supplement the UOG Accounting program with visiting professors, a lecture series and such, to bolster the University’s ability to meet the 150 hour educational requirement for Guam resident CPA exam candidates.

The Board has unanimously opposed firm mobility, and sees no real benefit from such, other than for multi-jurisdiction firms, especially so in a closed economic environment such as Guam. Without clarifying firm mobility implementation, it is difficult to see any benefit exceeding the costs of lost board revenues, expenditure of political capital, magnified enforcement uncertainty and jeopardized relevancy.

The Board continues to operate with our same staff of four (since 2001), and has issued over 2,000 licenses, with more than 600 of these active today.

HAWAII BOARD OF PUBLIC ACCOUNTANCY

- The Board continues to work on the implementation of mandatory peer review, which is required for firms to renew their permits to practice for renewal period beginning January 1, 2018. Preliminary registration requirements become effective on or before December 31, 2015.

- In spite of the fact that Hawaii is the last state to adopt individual CPA mobility, it appears that efforts to propose mobility legislation for this legislative session have been exhausted.

- Online license/permit renewals continue to be very successful, with participation rates of 90% or better.

IDAHO STATE BOARD OF ACCOUNTANCY

- The Idaho Board welcomed one new member this past year, David Westfall, CPA. There are currently seven board members who each have a term of five years. Two board members will see their terms expire in 2014.

- The online license renewal system continued to be utilized by Idaho licensees with 97.8% of renewals in 2013 occurring through the online system. Online CPE reporting continued to be close to 100%.

- The Idaho Board has begun discussions with our database vendor to begin supplying firm information to the ALD. With the help of NASBA’s ALD team, hopefully this will be complete during 2014.

- There were no rule changes taken to the Idaho Legislature by the Accountancy Board during the 2014 session but 2015 looks to be a different story at this point. There are also no current bills in the legislature that would have a major impact to the Accountancy Board. Last session, Senate Bill 1068 was passed and became effective in Idaho on July 1, 2013. It gave the Board the authority to promulgate rules to implement this legislation, which would expedite CPA licensure for active duty service members and their spouses.

- Formal complaints filed increased in 2013 over the previous year but were still in line with averages over the five years prior to 2012.

7.

ILLINOIS BOARD OF EXAMINERS

- Passed a new sunset legislation through 2024

- Discontinued our relationship with the University of Illinois, which began in 1903—110 years

- Affiliated exclusively with Northern Illinois University

- Moved our office from Champaign, IL to Naperville, IL

- Hired eight (8) new staff members

ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION

The Illinois Public Accounting Act went through sunset review in 2013. As a follow-up from this legislation, the Rules for the profession will be reviewed to determine what changes need to be made to accommodate the revisions to this Act.

INDIANA BOARD OF ACCOUNTANCY

A total of 955 CPE audits were conducted for the 2012 renewal period. There were 204 licensees found to be noncompliant for the continuing education audit. The maximum fine assessed was $5000.

The Board and the Indiana Society is in support of new legislation that is asking for increased terms for board members, adding a retired status, definition of attest, and increasing the board’s investigative fund cap to $1,000,000 before it reverts to the general fund.

The Peer Review Oversight Committee in 2013 has reviewed ten reports. The Committee has referred seven reports to the Office of the Attorney General for investigation.

Approximately 264 reviews were processed during year one of the licensing cycle (2012).

Approximately 158 reviews will be processed during year two of the licensing cycle (2013).

Approximately 162 reviews will be processed during year three of the licensing cycle.

IOWA ACCOUNTANCY EXAMINING BOARD

No update has been provided for Iowa.

KANSAS BOARD OF ACCOUNTANCY

- Rule changes to update materials made by reference

KENTUCKY STATE BOARD OF ACCOUNTANCY

- Under the governor’s budget proposal, we are to have $500,000 transferred out of our surplus account and into the general fund.

- We were going to try to come up with a plan for scholarships, but that is no longer a priority.

8.

STATE BOARD OF CPAs OF LOUISIANA

Employee ChangesBoth our executive director and deputy director retired within the past year after 17 and 25 years of service, respectively. Seventy-five percent of our staff is relatively new, having worked for our agency about two years or less. That brings a lot of challenges and a big learning curve for everyone, but it also allows for opportunities to review our processes to determine what changes might be needed.

CommunicationWe are focusing on communication with our licensees on many tracks. One goal is to generate electronic communications, such as a quarterly newsletter, to communicate and educate our licensees and other interested parties on such things as CPE rules, disciplinary actions, new CPA exam passers, board meetings, etc.

Another goal is to reach out to accounting students on college campuses to communicate Board Rules and CPA examination processes. We are working with our State Society on these presentations. The entire Board recently held an evening reception at LSU with the State Society (including Penny Vernon from NASBA’s Candidate Care as a featured speaker). The executive directors for both the State Society and the State Board have also addressed the Beta Alpha Psi at UNO meeting. We plan to extend that outreach to more universities in the next year.

Our website and social media are other communication tools on our to-do list to evaluate when possible.

TechnologyWe are targeting May 1st for both hardware and software upgrades. This will be time-consuming, but should result in significant improvements in user productivity. We are hopeful this will allow better analysis for management reports also.

RegulationIt is anticipated that we will be doing a complete review of our Accountancy Act and the Board Rules in order to submit needed and desired changes to our Legislature for its approval in 2015.

Part of those changes will include review of our CPE regulations, college credits required and delivery methods of education, international evaluation services, and licensee and firm fees.

MAINE BOARD OF ACCOUNTANCY

No update has been provided for Maine.

MARYLAND STATE BOARD OF PUBLIC ACCOUNTANCY

Board Membership/Staffing Three new members were appointed to the Board in January. These appointments filled the academic, consumer and industry positions on the Board. The Board will be adding another staff position this spring. This position, once filled, will bring to five full time and two part time staff members that support the Board’s activities.

Legislation/RegulationsAlthough there isn’t specific CPA legislation in 2014, there is one bill that will affect all public regulatory bodies in Maryland. The bill would require the attendance by Board members at a minimum of 60% of scheduled business meeting. Currently, a minimum of 50% attendance is required.

By May 1, the Board is expected to implement regulations to increase license and permit fees by 12.5% and require licensees to report convictions or sanctions by state and federal agencies for CPA license fitness-related offenses within 30 days. The increase in fees is part of a strategy to sustain the stability of the Board’s fund balance through 2024.

continues

9.

MARYLAND STATE BOARD OF PUBLIC ACCOUNTANCY (continued)

Technology InnovationsIn concert with three other special fund licensing programs, the Board is participating in a pilot program titled “The 21st Century Board Room.” Key features of the project include a 65” Smart Board, two 65” wall-mounted high definition TVs. Using cloud technology, Board members will be able to securely access and collaborate on Board committee programs between monthly business meetings. The 21st Century Board Room will enable the Board to participate in video conferencing, webinars and remote training sessions. Relevant Board documents and reference materials, such as laws regulation and accounting standards, would be available for display on the TV screens or be accessed by Board members on mobile devices during Board meetings. Staff time devoted to Board meeting preparation is expected to be reduced by three hours per month.

MASSACHUSETTS BOARD OF PUBLIC ACCOUNTANCY

No update has been provided for Massachusetts.

MICHIGAN BOARD OF ACCOUNTANCY

ReportingCPE reporting, peer review reporting, and renewal were combined in 2013.

License Renewal It was the first time that renewal was due on July 31—changed from Dec. 31.

At renewal, licensed CPAs were asked to list CPE courses completed during the continuing education cycle, rather than just reporting CPE totals.

During renewal, the department reviewed and audited by sample the reported CPE.

Issued denials based on CPE deficiencies in December (previously done in March following renewal). In 2013, the department sent out the denials in December so the licensees would have an opportunity to complete CPE, if insufficient, during the renewal cycle. In previous renewal cycles, the review of the CPE for those selected for audit were not completed until after the renewal cycle had ended resulting in denials being issued to those that failed to meet CPE requirements.

Changed the 120 day cut off for new applications’ two-year cycle from September 4 to April 4 to coincide with the July 31 renewal date.

MINNESOTA STATE BOARD OF ACCOUNTANCY

- There is one board member awaiting word as to whether they will be reappointed.

- Staffing increased from 3.5 to 4.5 full time employees. The additional employee will be working in the enforcement arena.

- The Minnesota Data Practices Act has now identified e-mail addresses as not public.

- There are rule changes in the very final stage of adoption, with no public hearing required after the comment period closed. The license renewal is now annual and the CPE reporting cycle will match the renewal date. There were also changes allowing for branding of firm names and housekeeping issues in the package. Last session, the Board raised its license fees from $45.00 to $100.00 and there has been little to no push back on the increase from the licensees who had over 40 years without an increase. continues

10.

MINNESOTA STATE BOARD OF ACCOUNTANCY (continued)

- Formal complaints filed slightly increased in 2013 over the previous year, with 95 open as of this writing. Of greater significance are the revocations as a result of theft or “misappropriation of client funds.” We have had three revocations and other cases open with the same type of allegation.

- Number of Active CPA licenses: 9,728

- Number of Inactive CPAs: 6,667

- After a long run, our web page is in the final stage of redesign.

MISSISSIPPI STATE BOARD OF PUBLIC ACCOUNTANCY

Legislative Budget Office Proposed FY2015 Appropriation Pending: The Executive Director requested that cuts to the Board’s Contractual Services Budget be restored; Request that proposed salary increases for four non-executive Board employees be restored.

Legislation Affecting Board of Public AccountancyPending: None.Died in Committee: Bill to reduce terms of Board Members from five (5) years to four (4) years; Bill that would require Mississippi Boards and Agencies located in the Jackson Metro area to relocate to the “Capitol Complex” (downtown Jackson, MS).

Board Member Changes Governor Phil Bryant reappointed Willie B. Sims, Jr., CPA, of Hattiesburg, MS, to a five-year term ending December 31, 2018.

Board Staff Changes On January 1, 2014, the Board hired Andy Wright, CPA, to fill the vacant Associate Director – Investigations position.

Technology Changes The Board is working with the State of Mississippi Information Technology Services agency (ITS) to replace its old legacy FoxPro licensing and regulation database system, which is no longer supported by Microsoft or ITS. The new Licensing and Regulation System (LARS) will be a web based dot-net system residing on the State of Mississippi secured servers. All forms and applications for licensing, regulation, discipline, and examination will be online. Online payments will be handled through Mississippi Interactive (MSI - Mississippi’s State Partner for eGovernment Solutions). Connectivity to NASBA ALD will be maintained.

On-line License RenewalsThe Board began offering optional online renewal of CPA licenses, beginning with calendar year 2013, and noted 22% participation that year and has noted a slight increase in 2014 to about 24%. The Board is planning to require online registration after implementation of the new licensing system under development by ITS.

NASBA CPE Tracking and Audit Services The Executive Director will present a proposal at the next meeting of the Mississippi Board to adopt these services in place of our Board’s current system of paper annual CPE reporting forms and manual audit processes performed by Board staff members.

MISSOURI STATE BOARD OF ACCOUNTANCY

Currently, the Missouri Board is in the process of converting from our existing licensee database to a new database. Our Board, along with approximately forty other Boards and Commissions, will share this database. This process to convert everyone is expected to take approximately eighteen months.

continues

11.

MISSOURI STATE BOARD OF ACCOUNTANCY (continued)

We are also just about finished with our annual CPE audit process using the NASBA cpetracking system. This is the second year that Missouri has used this system. The cpetracking system has proven to be a very useful tool in conducting our annual audit. In July of 2013, this CPE tracking system was expanded to allow all Missouri licensees to use it, if the wished to do so.

In a period of about sixty days last year, we had five new Board members appointed to our seven-member Board.

MONTANA BOARD OF PUBLIC ACCOUNTANTS

The Montana Board of Public Accountants continues to work through the transition from the Board sponsored Profession Monitoring Program (PMP) to a mandatory peer review requirement. We are past the deadline for the first third of our firms to enroll. We had great success with compliance and are looking forward to that continuing. Montana currently requires peer review for firms performing compilations.

We annually conduct a 20% CPE compliance audit. With a lot of individual attention, it has resulted in only one licensee being deficient in providing documentation of compliance. That one deficiency has resulted in a board generated complaint.

Legislation was passed in the 2013 Legislative session that requires licensing boards to adopt rules on how a board will accept military training, service or education to meet licensing requirements. The Board of Public Accountants met with educators and determined that the university system is already making equivalency determinations for education when a veteran enrolls in their institution. The Board is proposing to expand on who can attest to an applicant’s experience to include the applicant’s commanding officer.

The Board has done a complete rule review and is in the process of moving that very large rule package forward. The rule review package is primarily cleanup, clarification, and simplification of the existing rules. Few big changes are proposed.

Looking forward to the 2015 Legislative session, the Board of Public Accountants and the Montana Society of CPAs are considering another attempt at one tier licensing. Last legislative session, this was part of a Division consensus bill that died during the final hours of the session. It is unclear right now whether this will be a Board sponsored bill or a Society sponsored bill.

The Board is in the initial phase of developing the FY 15-16 budget request for the Legislature. The Department of Labor & Industry, which houses the Board of Public Accountants, is considering legislation that would require licensing boards to operate under enterprise funding rather than an appropriation. This would prove beneficial for larger boards with cash, such as the Board of Public Accountants, but may not work as well for smaller boards.

Dan Vuckovich, CPA, was named to replace Rick Reisig, CPA, on the Board. Dan is a partner at Anderson Zurmuehlen & Co in Great Falls.

The Board has been assigned a full time EO. This role is continuing to be defined. The Department of Labor, Business Standards Division, has several bureaus and a number of units that provide different services to the Board. We are still working through how all of it will work. We are in the planning stage of an upgrade to our database that went live a few years ago.

NEBRASKA STATE BOARD OF PUBLIC ACCOUNTANCY

- We have completed law and rule changes regarding the Board’s experience requirement allowing for other forms of experience to count, including private, academia, and other governmental work. The Board still requires two years of experience within a CPA firm , while three years for the other forms. All must be completed under a licensed active CPA. - In 2104, the Board has commenced a review of the Public Accountancy Act, including language that would require a CPA firm to complete Peer Review (and end the Board’s current QEP program) and align current Mobility provisions to more closely model UAA provisions. (Currently, the Board requires mobile CPA firms completing reviews to obtain licensure, including the licensure of one responsible partner.) continues

12.

NEBRASKA STATE BOARD OF PUBLIC ACCOUNTANCY (continued)

- The Board has experienced a significant “rollover” of Board members within the last three years.

- The Board continues to be very interested in a NASBA initiative to assist State Boards with backend database issues.

NEVADA STATE BOARD OF ACCOUNTANCY

We changed our experience requirement, which has not been changed since 1982. Nevada was one of the last few states that required two years of public accounting that included 1000 Attest (700 from Audit) hours. The change removed the Attest requirement and now only requires two years public accounting. The change to the experience was based on proposed statute changes. The statutory language was withdrawn with the agreement that the Board would handle through its regulatory process.

NEW HAMPSHIRE BOARD OF ACCOUNTANCY

- The Board met with students at the University of New Hampshire at their October 2013 meeting to discuss the requirement for 150 credits to become a CPA in New Hampshire, which becomes effective July 1, 2014. Also in attendance was Patricia Hartman from NASBA.

- The Board had several disciplinary actions in 2013. The CPA licenses of two individuals were revoked for failure to comply with the Board’s random audit of continuing education. The individuals failed to appear at the hearings; therefore, the hearings were held in absentia. The Board also entered into a settlement agreement with a licensee in regard to misconduct allegations that imposed a reprimand and an administrative fine of $7,000 and $14,000 in costs. The Board’s disciplinary actions are posted on our web site at: http://www.nh.gov/jtboard/boaenforcement.htm.

- 2013 House Bill 267, effective July 15, 2013, increased the number of CPAs on the Board from four to five CPAs. This Bill was requested by the Board because the former statutory language required replacement of the public accountant on the Board with a public member when the public accountant’s term expired in December 2013.

- Two new CPA members were appointed to the Board in late 2013 to replace members who reached their term limits. John Dagnieault, CPA, from Wolfeboro, New Hampshire was appointed to replace outgoing member Jeff Chickering, CPA, effective November 20, 2013. Richard Silverman, CPA, of Hampton was appointed to replace Owen Walton, PA, effective December 2, 2013.

NEW JERSEY STATE BOARD OF ACCOUNTANCY

No update has been provided for New Jersey.

NEW MEXICO PUBLIC ACCOUNTANCY BOARD

- We are nearing the end of the CPA Exam Pass Rate Taskforce, which was comprised of about three meetings and of included the involvement of NASBA’s James Suh. - We have dedicated another Taskforce to some public concerns as to whether or not Forensic Accountants are required to have a Private Investigator License in the State of New Mexico. This Taskforce has elevated to working very closely with the PI Board and is in the process of some new developments, which have not been officially determined yet.

- We have some Rule changes in process and we are implementing some new electronic processes, such as Electronic Fingerprinting/Livescan, Electronic Board Meetings, Etc.

13.

NEW YORK STATE BOARD FOR PUBLIC ACCOUNTANCY

- Four new licensed members were appointed in 2013 to the 22-member board.

- There has been a 50% turnover in staff of the board office within the past year. The board filled two of the four staff positions in late 2013 and is hoping to fill the two remaining positions in early 2014.

- The Quality Review Oversight Committee (QROC) presented its first annual report to the State Board for Public Accountancy in September of 2013.

NORTH CAROLINA STATE BOARD OF CPA EXAMINERS

Consolidation, Elimination and/or Administrative Agency LegislationHouse Bill 74 passed in the 2013 Session of our legislature. The legislation calls for the study of our 56 occupational licensing boards (OLB) to determine the feasibility of (1) a single state agency to oversee all OLBS, (2) combining the administrative functions of all the OLBs while allowing the OLBs to continue their regulatory functions, and (3) reducing, combining or eliminating the 56 OLBs. The Program Evaluation Division (PED) has already started collecting financial information and will begin interviewing the OLBs this May for operational and other information with their report due to a Legislative Committee this December for possible action in the January 2015 Session of our Legislature.

Periodic Review of State Agencies RulesAlso included in House Bill 74 was legislation requiring all state agencies to review all of their rules every ten years. Each state agency has to review its rules and make one of three determinations: (1) is the rule necessary with substantive public interest, (2) is the rule necessary without substantive public interest, and (3) is the rule unnecessary. Once the state agency has made these determinations and they are reviewed and approved by the Rules Review Commission and Joint Legislative Administrative Procedure Oversight Committee (APO), the state agency has to go through the rule-making process and readopt all rules found necessary with substantive public interest. All rules determined to be necessary without substantive public interest are not required to be readopted. Unnecessary rules are deleted from the code upon approval of the review by the APO.

Peer Review The Board has been dealing with over twenty cases of failed peer reviews this past year and is continuing to receive more of these cases. We are in process of receiving information from our state association on approximately 26 CPA firms whose peer reviews have been recalled because they failed to disclose ERISA audits they performed during their peer review year to their peer reviewer during the peer review process. One of the CPA firms was reported to have failed to disclose over twenty ERISA audits they performed. These disclosures came to the state associations from the Department of Labor.

Board Staff The Board is very fortunate to be blessed with a great staff, which has been working for the Board as follows as of April 1, 2014: Felicia Ashe – 29 years 4 months, Phyllis Elliott – 28 years 4 months, Bob Brooks - 28 years, Alice Grigsby – 28 years, Buck Winslow – 27 years 7 months, Ann Hinkle – 27 years, Lisa Hearne – 17 years 7 months, Vanessia Willett – 9 years 6 months, Mary Beth Britt - 8 years 8 months, Cammie Emery – 6 years 3 months, and our babies, Frank Trainor – 3 years 3 months, and David Nance – I year 7 months.

Preparer Tax Identification Number (Pitn)The Board obtained a copy of the database of individual holders of PITNs registered with the IRS through a public information request and a small fee. The database as of June 2013 contains 681,732 US PITN holders. The information contains as follows: name, business name, business address, email, phone, website and credential. Board staff (David) downloaded a file of our active CPAs and compared it with the individuals listed on the IRS database with North Carolina addresses who registered as a CPA. The initial results have identified over 500 individuals who do not hold an active North Carolina certificate but who identified themselves to the IRS as a CPA living in North Carolina registered to be able to prepare tax returns. A lot of these individuals are CPAs from other jurisdictions that have moved to North Carolina but have not applied for to us for a reciprocal certificate. Some of these are former licensees who were granted inactive status and some are licensees whose certificates were revoked. We are in the process of pursuing these individuals for unauthorized use of the CPA credential.

NORTH DAKOTA STATE BOARD OF ACCOUNTANCY

- National criminal checks will now be required for reinstatement applications when the applicant has not been licensed for quite some time.

- There is Board concern about CPE quality (e.g., too basic, inattention in class).

- Credentialing education (e.g., CA programs) will not qualify toward the 150 hour education requirement.

- We will now be examining CPE of those moving from private to public practice, looking for CPE relevant to the new practice.

- Our longest-tenured staff member, Norene Reiten, is retiring—after about 28 years with us.

ACCOUNTANCY BOARD OF OHIO

No update has been provided for Ohio.

OKLAHOMA ACCOUNTANCY BOARD

In Oklahoma, we are busy with Sunset Review legislation and some rule changes. Additionally, the Governor has appointed our next Board member to take his seat on the Board July 1st. His name is Marc Delametter. With a 188 million dollar hole in our State budget, we are watching the proposals to fix the hole, including the sweeping of revolving accounts of licensing agencies. Recently, we were targeted for financial services consolidation, but were able to demonstrate that the Oklahoma Board was working more efficiently and inexpensively without having these services consolidated.

OREGON BOARD OF ACCOUNTANCY

Laws and RulesThe Oregon Board has discontinued its annual rule updates in favor of a process begun in Fall 2013 of a broad review of its laws and rules in an attempt to provide more clarity, a clearer framework, and a greater emphasis on principles-based rules and laws. The initial focus of the task force was on development of statutory changes for the 2015 legislative session, which require submission for executive branch review by April 2014. The Board has approved moving forward with a key legislative initiative to clarify and broaden board authority and update definitions, as well as initiatives to add board authority to emergency suspend a licensee in egregious cases. The board is also moving forward with consideration of separate statutory proposals to update the definition of attest, clarify language on the firm registration requirement (placeholder concept), as well as consideration of whether the statutory requirement of 150 hours of education should be lowered to 120 hours for purposes of permission to sit for the CPA exam.

While work on these statutory initiatives continues, the laws and rules task force is focusing, come May 2014, on a broad-based review of our laws and rules. The goal is to develop initial recommendations for rule changes by August 2014 for submission to broad-based Rules Advisory Committee.

Beginning July 2013, the Oregon Board worked with the Oregon Department of Public Safety Standards and Training (DPSST), and the Oregon Society of Certified Public Accountants - OSCPA) to develop statutory language for a clear exemption for CPAs authorized to practice in Oregon, and their employees, from the Private Investigator Licensure requirement administered by DPSST. At the request of OSCPA, this bill was introduced as SB 1549 in the February 2014 session. SB 1549 has received unanimous support to date and should become law in March 2014.

Staff ChangesThere have been multiple staff changes at the Oregon Board, including addition of a second CPA-credentialed investigator to the staff. Contracted CPA investigators are also still an important part of the Board’s ability to protect the public—hence the effort on SB

14.

continues

OREGON BOARD OF ACCOUNTANCY (continued)

1549 above. The Board also conducted an in-depth investigator training for its contractors in November 2013 to help ensure clarity of expectations and improve consistency of the investigatory reports and format to meet the expectations of the Board and the Board’s complaints committee.

Transparency and Process ImprovementsThe Oregon Board is moving swiftly toward better transparency with special emphasis on better sharing of disciplinary and licensing data. The Board, as of December 2013, is sharing its disciplinary and licensing data with NASBA and other Boards through the ALD, and with consumers through CPA verify.org. Work on full automation of that link is in its final phase now. The Oregon Board now also publishes disciplinary records as part of its own state-based Oregon look-up, which has been completely revised. Separately, staff members continually update chronological and alphabetical summaries of disciplinary actions finalized by the Board, and publishes those on the front page of the Board’s web site, easily accessible to consumers.

With respect to applicants with foreign credentials, the Oregon Board has moved toward becoming a NIES-only state, effective June 1, 2014, with NIES applications accepted as of March 1, 2014.

PENNSYLVANIA STATE BOARD OF ACCOUNTANCY

No update has been provided for Pennsylvania.

PUERTO RICO BOARD OF ACCOUNTANCY

- Automation processes for the Board almost complete

- Propose legislation for Mobility

RHODE ISLAND BOARD OF ACCOUNTANCY

No update has been provided for Rhode Island.

SOUTH CAROLINA BOARD OF ACCOUNTANCY

No update has been provided for South Carolina.

SOUTH DAKOTA BOARD OF ACCOUNTANCY

- Effective July 1, 2013, we have updated our statute to reflect a streamlined process for our firm permits. The fee structure was changed from paying per CPA in the firm to the number of owners in the firm. We also removed the requirement and fee to have each office location in the firm registered to just the one principle office. The changes proposed did change our revenue and will be monitored over the next few years to determine actual financial impact with projected outcomes.

- With the changes to the firm permits, we also completed changes to the online renewal application forms.

- There was an open secretary position in our office for six months that has been filled.

- The Board is in the process of updating rules in regard to CPE and the word count method.

15.

TENNESSEE STATE BOARD OF ACCOUNTANCY

- Our offices were relocated and we are now in a much smaller space. We are finding it a little difficult to adjust!

- We are continuing to work on a conversion of our licensing database from Versa to Iron Data. Estimated completion date for the project is sometime in the Spring of 2015.

- The Board lowered renewal fees from $120.00 biennially to $110.00 biennially. It appeared that we were building up our Reserve Fund and the Board felt it best to give some of the income back to the licensees.

- We have completed our first enforcement action based on mobility. A licensee from another state issued financial statements to an organization in Tennessee on an expired license. Complaints were opened against the individual CPA (who had let his license in his home state expire) and against the firm (this license had also expired). Consent orders were issued in both complaints with civil penalties attached. The Respondents signed the orders and paid the civil penalties. The home state Board has been notified of the disciplinary action.

- In a formal hearing, the Board revoked a Respondent’s individual and firm licenses and assessed a $4,000.00 civil penalty. The Respondent appealed the Board’s decision and on a technicality, the Chancery Court remanded the case to the Board for further consideration. The Board heard the pertinent points in the case in a specially called meeting and upheld the revocation of both licenses, but reduced the civil penalty by $1,000.00. The Respondent has now filed another appeal.

TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY

No update has been provided for Texas.

UTAH BOARD OF ACCOUNTANCY

No update has been provided for Utah.

VERMONT BOARD OF PUBLIC ACCOUNTANCY

No update has been provided for Vermont.

VIRGIN ISLANDS BOARD OF PUBLIC ACCOUNTANCY

No update has been provided for Virgin Islands.

VIRGINIA BOARD OF ACCOUNTANCY

Past year- Sent out customer service survey to our licensees & exam candidates in July 2013; received over 2,900 responses (approx 10% response rate)

- Held Board meeting on the campus of Longwood University

16.

continues

VIRGINIA BOARD OF ACCOUNTANCY (continued)

- Worked closely with the VSCPA regarding legislative changes/bills l Added a statute of limitations (through legislative process) for filing complaints (effective July 1, 2013) l Have added a statute requirement that all Virginia CPA firms participate in the AICPA’s Facilitated State Board Access System (FSBA); General Assembly has approved – expect Governor to sign and become effective July 1, 2014

- Worked closely with the VSCPA regarding its Ethics Course Video – participated in video clip

- Authorized four (4) additional full-time staff by General Assembly/Governor, effective July 1, 2013

- Underwent significant office renovations to accommodate new staff

- Peer Review Oversight Committee (PROC) issued its 2nd annual report in January 2014

- Winner two (2) years in a row of the “Governor’s Bowl” – state agency fundraiser (per capita) for Virginia Food Banks

- Newsletter enhancements

On the Horizon

- CPA Exam and Licensure Database replacement

- College & Firm Circuit/Outreach Program

- New publications

- Website enhancements

- Videos for training/informational purposes

Challenges

- Economic – impact of fee increase – particularly out of state licensees? At this time, we continue to see an increase in the number of out of state licensees. Revenue is increasing.

WASHINGTON STATE BOARD OF ACCOUNTANCY

Washington State’s Substantial EquivalencyNASBA staff recently challenged the Board’s rule allowing 1.5 credits toward the concentration in accounting as impeding the state’s recognition as a substantially equivalent state. This provision allowed the additional credits only if the courses taken were at the graduate level and did not count toward the 150 hour credit hour education requirement for examination or licensing. Interestingly, this rule had been in place at least since the conformity of our statute to the UAA by legislation in 2001.

A rule change will be proposed by the Executive Director at the April, 2014 Board meeting.

Private Investigator Licensing for CPAsWashington law has two provisions for professional licensing requirements. The Business and Professions Act implemented by the Director of Licensing Chapter 18.235 RCW and the Public Accountancy Act, Chapter 18.04 RCW.

17.

continues

WASHINGTON STATE BOARD OF ACCOUNTANCY (continued)

The DOL statute, Chapter 18.235 RCW, provides, in part:(1) This chapter applies only to the director and the boards and commissions having jurisdiction in relation to the businesses and professions licensed under the chapters specified in this section. This chapter does not apply to any business or profession not licensed under the chapters specified in this section.(2) (xii) Private investigators under chapter 18.165 RCW;(3) In addition to the authority to discipline license holders, the disciplinary authority may grant or deny licenses based on the conditions and criteria established in this chapter and the chapters specified in subsection (2) of this section. This chapter also governs any investigation, hearing, or proceeding relating to denial of licensure or issuance of a license conditioned on the applicant’s compliance with an order entered under RCW 18.235.110, Unprofessional Conduct, by the disciplinary authority.

Certain PIs and CFEs raised the issue of CPAs providing Forensic Accounting services and testifying in judicial proceedings without a Private Investigator’s license in a meeting with this ED in 2012. At that time, this ED obtained AG advice that since the Public Accountancy Act was more specific to the profession of accounting than the Business and Professions Act administered by the state’s Department of Licensing (DOL), CPAs were exempt by exclusion from the DOL statute.

The issue further illuminated itself in 2013 by the same individuals at a CFE conference in Oregon and in an article in the CFE magazine authored by the CFE that co-raised the issue. I believe the Oregon Society proposed legislation this year that would exempt licensed CPAs.

The Executive Director sees this as a “Back-Door” to Consolidation. The Board will discuss this issue further during 2014.

Military Personnel Waivers And Military SpousesIn 2013, the legislature enacted legislation providing for expedited licensing of Military Spouses who relocated from a substantially equivalents state. A state-wide rule was put into place to implement that legislation but omitted the Board of Accountancy from those requirements.

The Executive Director will propose a Board rule consistent with the state-wide rule for Board consideration at the April, 2014 Board meeting.

The legislature is anticipated to enact legislation in the current session to require a waiver of CPE and Renewal Fees for military personnel on active duty.

The Executive Director anticipates passage of that legislation, has drafted a proposed rule conforming to the anticipated legislation for consideration at the April, 2014 Board meeting.

If the Board approves these rules as drafted, the rules would likely become no later than August, 2014.

State-Wide Emphasis On Transparency And Enhanced Public Communications Of Objective LEAN Government Efforts And Measurements:The Executive Director obtained additional expenditure authority to restructure the agency’s database to accommodate the newly elected Governor’s emphasis on transparency and LEAN government, public accessible measurements and outcomes.

The restructured database is expected to be implemented by June 20, 2014, with additional applications to be fully implemented by June 30, 2015

Board Governance InitiativesThe Executive Director of the Washington State Board is appointed by and reports to the Governor as opposed to the Board members. As a result of this structure, the Board has begun implementing two initiatives previously recommended by the Executive Director:1. An annual evaluation of the performance of the agency’s Executive Director; and2. A search for a replacement applicant for the Executive Director position, if and when a replacement becomes necessary.

Budget, Financing, & Other Good NewsNo current consolidation initiatives or constraints affecting fund balance or appropriated expenditure authority.

18.

WEST VIRGINIA BOARD OF ACCOUNTANCY

- At the January 10, 2014 Board meeting, Brenda Turley was appointed Executive Director of the West Virginia Board of Accountancy.

- Mrs. Walker is still working on a very limited basis, but her title was changed to Executive Director Emeritus.

- In September 2013, we hired Stefani Young as an Administrative Assistant to lend administrative support and pick up duties that had previously been assigned to me.

- This Board is also considering changing some of its mandatory course requirements, such as Business Law, in order to more closely align with the subject matter required for the CPA Examination.

- The Governor is in the process of appointing new Board members and we will most likely know who the new members will be by the time of the Directors’ Conference.

WISCONSIN ACCOUNTING EXAMINING BOARD

No update has been provided for Wisconsin.

WYOMING BOARD OF CERTIFIED PUBLIC ACCOUNTANTS

LegislativeAs this is written, the Wyoming Legislature is in session and considering a handful of bills that, if enacted as written, would impact the Board financially and operationally. This session is a budget session. The Board’s budget, as presented by the Governor, has not been amended so far. The anticipated impact of one of the bills could result in an increase in the Board’s annual expenses by approximately $25,000 to $27,000 annually because of an audit requirement and a change in how the Board pays the State for the services it provides. Another bill would approve a study of potential consolidation of human resource personnel. Both of these bills could be setting the stage for an attempt at consolidation of licensing boards and commissions. These types of issues are being closely monitored and the Board staff works closely with the Society to address them.

Rules StreamliningAn awful lot of effort and resources are being devoted to streamlining rules. The project is a statewide and massive effort to create a more efficient government. The Board has appointed a Committee to work with Board staff to meet the Governor’s challenge of reducing its rules by one-third in number and one-third in length.

EnforcementThe Board staff has noticed a trend with respect to enforcement. A number of certificate holders with inactive certificates have been performing accounting services as defined by state law. In addition, holders whose principal place of business has become Wyoming are not properly registering with the Board. Inactive holders have the impression that, as long as they are not “holding themselves out” and do not work in a CPA firm, they do not need to hold an active certificate. Those who have made Wyoming their principal place of business have a general misunderstanding that they are able to practice anywhere because of their licensure in another state. The staff is making efforts to reach out to all practitioners to clarify the law with respect to active and inactive certification.

The Board suspended a holder’s certificate for a year in response to a falsified CPE certificate of completion.

New Board MemberThe Board’s newest member, Ms. Roxanne P. Ostlund, CPA, was appointed to a three-year term by the Governor.

19.

2/28/2014

1

The Uniform CPA Examination

AICPA Practice Analysis

NASBAExecutive Directors Conference

March 2014Michael Decker, Director of Examinations, AICPA

The Uniform CPA Examination

Why we need it

Preparing for theMarket Analysis

2/28/2014

2

The Uniform CPA Examination

The Need for a Market Analysis

Changing Accounting Profession:

Impacts Exam and licensure process

Adapting to the Market:

Enables Exam relevance and protection of the public interest

Practice Analysis:

Identifies knowledge and skills needed at entry-level practice

Market Analysis:

Provides information about the profession, the pipeline, and its constituents

The Uniform CPA Examination

Preparing for thePractice Analysis

What we need to find out

2/28/2014

3

The Uniform CPA Examination

Practice AnalysisA research project designed to…

5

Document the scope of entry-level practice

Identify how entry-level practice is changing

Serve as the foundation for the Exam’s validity and legal defensibility

Provide data to define the scope of the CPA Exam

The Uniform CPA Examination

Two Most Important BOE Responsibilities

6

►Determine what will be tested and under what structure (Practice Analysis)

►Define acceptable performance (establishing the passing score)

2/28/2014

4

The Uniform CPA Examination

Practice AnalysisThe CPA Exam Responds to the Needs of the Profession

7

The Uniform CPA Examination

BOE and the Practice Analysis

8

Board of Examiners

Psychometric Oversight Committee

Content Committee

Audit Subcommittee

Financial Accounting

and Reporting Subcommittee

Business Environment and Concepts Subcommittee

Regulation Subcommittee

State Board Committee

BOE Sponsor Group

SponsorAdvisoryGroup

2/28/2014

5

The Uniform CPA Examination

What we know

New Resource for Boards of Accountancy

The Uniform CPA Examination

Event in a Box

Provide boards of accountancy with student-focusedresources for use at educators conferences, state society meetings, etc.

Created with NASBA

Includes:

• Resource PowerPoint

• Complementary talking points

2/28/2014

6

The Uniform CPA Examination

Thank You!

2/26/2014

1

Background Checks, Convictions & Disciplinary Data / Multi‐Exam Takers

NASBA 2014 Executive Directors & Board Staff Conference

Presented by Wade A. Jewell, Executive DirectorVirginia Board of Accountancy

Background Checks

45 Jurisdictions responded to some degree– 6 perform background checks on CPA Exam Applicants:

• Georgia

• Missouri

• Nebraska

• New Mexico

• Oklahoma

• Texas

2/26/2014

2

Background Checks, continued

11 jurisdictions perform background checks on License Applicants:

• Arkansas

• California

• Florida

• Georgia

• Missouri

• Nebraska

• Nevada

• New Mexico

• Oklahoma

• TX (reciprocals)

• Washington

Background Checks, continued

Processes / Procedures Utilized

• Fingerprinting.

• CA implemented mandatory retroactive fingerprinting for licensees in 2013.

• Review/investigate all affirmative responses to the moral character question asked on all application/renewal forms (NC).

• FBI background checks on reciprocals and licensees with recent criminal history (TX).

• Ask applicants if they have been convicted of crime/misdemeanor/ felony & to provide detailed information (many jurisdictions).

2/26/2014

3

Background Checks, continued

Processes / Procedures Utilized, continued• State Police (AR)

• FBI (CA, NV, TX)

• State Bureau of Investigation (OK) 

• Sheriff (GA)

• Live Scan (CA, NM) 

• Justice System (NE)

• SSN & Date of Birth (FL)

• Pacer (Federal Court System) (NE, VA)

• Google (NE)

Background Checks, continued

Processes / Procedures Utilized, continued

• How/by whom are background checks conducted?– Perform own background checks (FL, NE).

– Utilize a service / agency to perform background checks (AR, GA, NV, NM, OK).

– Utilize a combination of approaches (CA, MO, NE, TX, WA).

2/26/2014

4

Background Checks, continued

How are background checks paid for?  Costs?

• Include background check with application (NM).

• Applicant pays Board directly (CA). 

• Applicant pays service provider directly (CA).

• Fee included in application fee (AR, NV, OK, TX).  

• Board “absorbs” cost (MO, NE, W).

• Costs:– AR ‐ $38.50, CA ‐ $49 (Live Scan ‐ $15), NV ‐ $37, NM ‐ $44, OK ‐ $15 

standard, $25 for multiple aliases, TX ‐ $1 name search, $25 for FBI, WA ‐ $10.

Convictions

Does Board require applicants (Exam & License) / License renewals to report convictions?

• Applicants?

– Felonies & Misdemeanors (AK, AL, AR, AZ (not  Exam),     CA (not Exam), CO, DC, GU, HI, (not Exam), KY, KS, MD, MN, MT, NC, ND (not License), NE, NH, NM (not License), NV, OR, PA, SD, TN, TX, VA, VT, WA, WY).

– Felonies only (CT, LA, MO, NM (License only), OK).     

2/26/2014

5

Convictions, continued

• License Renewals?

– Felonies & Misdemeanors (AK, AR, AZ, CA, DC, HI, KY, KS, LA, MD, MT, NC, NE, NV, OK, PA, SD, TX, VA, WA, WY).

– Felonies only (AL, CT, MN, MO, NH, NM, OR, TN).

Convictions, continued

What does Board do with conviction data?

• Referred to Enforcement or full Board.

– No authority for Exam applicants (OR).

– If misdemeanor, application is processed but saved for future consideration in event of violation.

– Formal hearing may be required.

– May require rehabilitation (CO, HI).

2/26/2014

6

Convictions, continued

What does Board do with conviction data? (continued)

• Depends on seriousness.

• Talk about it before deciding.

• Licensing Committee makes recommendation to full Board.

• Reviewed by Executive staff and/or Board attorney (NC, TX).

• Interviews conducted with Exam applicants.

• Review, determine if conviction has been resolved.

Convictions, continued

Are licensees required to self‐report convictions?

• Felonies & Misdemeanors?– AK, AR, AZ, CA, CO, GU, HI, KY, KS, LA, MD, MN, MT, NC, NM, NV, OK, PA, SD, TX, WA, WY.

– Some jurisdictions only require misdemeanors related to dishonesty, fraud, deceit and misrepresentation.

• Felonies only?– CT, MO, NH, OR, TN.

What is done with the information?– Same/similar to initial applicants.

2/26/2014

7

Disciplinary Actions

Does Board require applicants (Exam & License) / License renewals to report disciplinary actions?

• Applicants?

– AK, AL, AR, AZ (not  Exam), CA (not Exam), CO, CT, DC, GU,     HI (not Exam), KS, LA, MD, MN, MO, MT, NC, ND (not License), NE, NH, NM, NV, OK, OR, PA, SD, TN, TX, VA, WA, WY.

Disciplinary Actions, continued

License Renewals?– AK, AR, AZ, CA, CT, DC, GU, HI, KS, LA, MD, MN, MO, MT, NC, NE, NH, NM, NV, OK, OR, PA, SD, TN, TX, VA, WA, WY.

Does Board require licensees to self‐report disciplinary actions?– AK, AR, AZ, CA, CO, CT, GU, HI, KS, LA, MD, MN, MO, MT, NC, ND, NH, NM, NV, OK, OR, PA, SD, TN, TX, VA, WA, WY.

2/26/2014

8

Disciplinary Actions, continued

What does Board do with disciplinary data? 

• Same/similar as conviction data.

• Determine if violation of examination regulations has occurred.

• May issue license, issue a probationary license, or issue an unrestricted license (MT).

• Reviewed on case by case basis.

Jurisdiction Comments

• Requiring reporting of convictions and disciplinary actions is an essential public protection tool.  This has been an essential disclosure requirement in Oregon for decades, and is strongly supported (and expected) by the public and legislators.

• Westlaw System allows staff to do an extensive background of individual (NC).

• Will be conducting fingerprint checks (FBI) on Exam applicants in the future (TX).

• Interested in possibly performing fingerprint checks (NE, VA).

• Implementing a background check for reinstatements (ND).

2/26/2014

9

CPA Exam Multi‐Testers• NASBA (Chris Mays) sends out quarterly report of CPA Exam 

Multi‐Testers.• Virginia has enacted a policy regarding multi‐testers:

– In fulfilling its mission to protect the citizens of the Commonwealth through a regulatory program of licensure and compliance of CPAs and CPA firms, the Board shall ensure that Exam applicants demonstrate competence and integrity (§ 54.1‐4403).  Per Board Regulation 18VAC5‐22‐80.C.4., the Board may postpone scheduled CPA examinations, the release of grades, or the issuance of licenses for any other reasonable circumstances.  Therefore, it shall be the policy of the Board to review an Exam applicant’s record for applicants that have taken combined sections of the Exam more than 40 times.  Based on facts and circumstances (to include but not limited to the number of sections passed, number of current Exam section credits, and scores), such applicants at the discretion of the Executive Director and prior to being approved to sit for additional sections of the Exam, will be required to come before an Informal Fact Finding (IFF) Hearing of the Board to present evidence of their intent to pass the Exam.  The full Board will determine if the applicant will be permitted to continue sitting for the Exam.

CPA Exam Multi‐Testers, continued• Virginia has contacted 7 individuals that have met the criteria to date.

• Three individuals never responded to us.

• One individual transferred his grades to another jurisdiction.

• We have held 3 IFF’s.

• Intent of IFF’s:

– How can we help individuals who are serious about passing the exam accomplish their goal?

2/26/2014

10

CPA Exam Multi‐Testers, continuedGeneral questions asked during IFF’s:• Education History?• Career History?• Do you currently, or have you ever, worked for a CPA 

Review Course provider or for anyone (including yourself) that provides information to CPA Exam applicants that are preparing to take the CPA Exam?

• What are your exam failure issues?• How are you addressing your exam failure issues?• How are the exam fees being paid?• What’s your overall exam career objective? (i.e., interest 

in public, private, government accounting, etc.)

CPA Exam Multi‐Testers, continued• We eventually get around to the “are you cheating in any way” type questions.

• End result – all 3 IFF’s:

– Applicants were granted 2 additional years to completely pass the Exam.

– If they do not pass within 2 years, they will have to come back before the Board (Enforcement Committee).

– If this happens, the Board will have to make decisions in “unchartered” waters.

2/26/2014

11

Final Questions/Comments

Page 1 of 36    NASBA ED & Board Staff Conference – March 2014  

Background Checks, Convictions & Disciplinary Data 

for Boards of Accountancy 

Presented at 2014 Executive Directors & Board Staff Conference 

March 4‐5, 2014 

(Sample of relevant statute, regulations, & rules sections) 

 

Note:  The information contained in this document is for informational purposes only, and not required for the Table Topic Breakfast at this year’s conference.  These statutes, rules and/or regulations have been “cut and pasted” from respective jurisdictions websites, as identified in the recent NASBA quick poll.  Information, for the most part, has not been checked for accuracy or relevancy.  This document has been edited for brevity.  There may be additional statutes, rules and/or regulations that apply; however, for the sake of time and once again, brevity, not all may be included.  The actual results of the quick poll are available by request. 

 Respective Board Statutes, Rules & Regulations  Alabama  Authority to design an application and request information. 

 Alaska  Public Accountancy Statutes.  AS 08.04.110.  Personal requirements. An applicant for a certified public accountant license shall be at least 19 years of age and of good moral character.  AS 08.04.450.  Revocation or suspension of license, practice privilege, permit, or out‐of‐state exemption. (a) In addition to its powers under AS 08.01.075, the board may revoke, suspend, or refuse to renew a license, practice privilege, permit, or out‐of‐state exemption, or may censure a holder of a license, practice privilege, permit, or out‐of‐state exemption, for (1) fraud or deceit in obtaining a license or permit required by this chapter; (2) dishonesty or gross negligence in the practice of public accounting, or other acts discreditable to the accounting profession; (3) violation of a provision of AS 08.04.500 ‐ 08.04.610 or failure to take corrective action to comply with AS 08.04.240(i) within the time allowed under AS 08.04.240(j); (4) violation of a rule of professional conduct or other regulation adopted by the board; (5) conviction of a felony under the laws of any state or of the United States; (6) conviction of any crime, an essential element of which is dishonesty or fraud, under the laws of any state or of the United States; (7) cancellation, revocation, suspension, or refusal to renew authority to practice as a certified public accountant or public accountant in any other state for any cause other than failure to pay a required fee; (8) suspension or revocation of the right to practice before any state or federal agency; (9) failure to satisfy the continuing education requirements 

Page 2 of 36    NASBA ED & Board Staff Conference – March 2014  

prescribed by the board under AS 08.04.425, except as conditioned, relaxed, or suspended by the board under AS 08.04.425(c) and (d); (10) failure to satisfactorily complete a quality review requirement under AS 08.04.426; or (11) committing an act in another state for which the holder of the license, practice privilege, permit, or out‐of‐state exemption would be subject to discipline in this or the other state.  (b) The board shall investigate a complaint made by the board of accountancy, or other regulatory body for the practice of accounting, of another state.  Regulations.  12 AAC 04.155.  DENIAL OF LICENSE. The board may refuse to grant a license to an applicant for the same reasons that the board may impose disciplinary sanctions upon the holder of a license.  12 AAC 04.520.  DISCIPLINARY GUIDELINES. (a) Nothing in this section prohibits the board from imposing greater or lesser penalties than those described, depending on the circumstances of a particular case.  (b) The board may revoke a license, permit, or practice privilege if the holder of the license, permit, or practice privilege (1) obtains or attempts to obtain, by fraud or deceit, a license, permit, or practice privilege; (2) is convicted of a felony under the laws of any state or the United States; (3) is the subject of a licensing action by another state as described in AS 08.04.450(7); or (4) has had the right to practice public accountancy before any state or federal agency suspended or revoked. (c) The board may suspend a license, permit, or practice privilege for up to two years, impose a civil fine in the amount determined by the board, and impose other disciplinary sanctions authorized under AS 08.01.075, in cases of (1) gross negligence in the practice of public accounting as defined in 12 AAC 04.530(3); (2) an act discreditable to the accounting profession as defined in 12 AAC 04.530; (3) dishonesty in the practice of public accounting as defined in 12 AAC 04.530; or (4) the conviction of a crime involving dishonesty or fraud as described in AS 08.04.450(6).  (d) The board may suspend a license, permit, or practice privilege for up to one year, in cases of (1) violation of a provision of AS 08.04.500—AS 08.04.610 as described in AS 08.04.450(3); and (2) violation of a regulation of the board as described in AS 08.04.450(4).  (e) If the board determines that an applicant has cheated on or breached the security of the examination for certified public accountancy, the applicant is subject to the following:  (1) voiding of that applicant’s examination score and denial of a license or permit to that applicant based on that examination score; (2) prohibition of that applicant from sitting for further examinations in the state.    12 AAC 04.530.  DEFINITIONS FOR DISCIPLINARY GUIDELINES. In AS 08.04.450 and 12 AAC 04.520 – 12 AAC 04.530.  (1) “act discreditable to the accounting profession” includes (A) breaching a client confidence; (B) attempted bribery; and (C) using the reputation of a business establishment of public accountancy as a front for illegal financial activities; (2) “breaching the security provisions of a licensing examination” includes (A) removing from the examination room any examination materials without authorization; (B) reproducing, or assisting a person in reproducing, any portion of the licensing examination by any means and without authorization; (C) paying a person to take the licensing examination to discover the content of any portion of the licensing examination; (D) obtaining examination questions or other examination materials, except by specific authorization, before, during, or after an examination; (E) using, or purporting to use, improperly obtained examination questions or 

Page 3 of 36    NASBA ED & Board Staff Conference – March 2014  

materials to instruct or prepare an examinee for the licensing examination; and (F) selling, distributing, buying, receiving, or having unauthorized possession of any portion of a future, current, or previously administered licensing examination; (3) “cheating on a licensing examination” includes (A) communicating with another examinee or an unauthorized person during the administration of the examination, regarding the content of the examination; (B) copying answers from another examinee or permitting answers to be copied by another examinee; (C) possessing, during the administration of the examination, any books, equipment, notes, written or printed material, or data of any kind, other than the examination materials distributed or otherwise authorized to be possessed during the examination; (D) impersonating an examinee, or having another individual take the examination on behalf of the examinee; and (E) violating written or oral examination instructions; (4) “dishonesty in the practice of public accounting” means making misleading, deceptive, or untrue representations in the practice of public accountancy; (5) “fraud or deceit in obtaining any certificate, license, registration, or permit” includes (A) knowingly submitting to the board false or forged evidence in, or in support of, an application for a certificate, license, registration, or permit; (B) cheating on a licensing examination, or assisting a person in cheating on a licensing examination; and (C) breaching the security provisions of a licensing examination; (6) “gross negligence in the practice of public accounting” includes (A) failure to adequately keep required documentation and work papers of a client or of work performed by the holder of a license, permit, or certificate; and (B) misaccounting of funds, or other misapplication of generally accepted accounting practices, that results in substantial injury. 

 Arizona  Arizona Administrative Code.  R4‐1‐345(A).  Registration; Fees.  A. Initial registration: After the Board approves an applicant’s request for certification or firm registration, the applicant shall file an application for initial registration in a format prescribed by the Board and pay a registration fee under subsection (C).  Arizona Administrative Code.  R4‐1‐456.  Reporting Practice Suspensions and Violations.  A. A registrant, individual, or firm shall report to the Board:  1. Any suspension or revocation of the right to practice accounting before the federal Securities and Exchange Commission, the Internal Revenue Service, or any other state or federal agency; 2. Any final judgment in a civil action or administrative proceeding in which the court or public agency makes findings of violations, by the registrant, of any fraud provisions of the laws of this state or of federal securities laws; 3. Any final judgment in a civil action in which the court makes findings of accounting violations, dishonesty, fraud, misrepresentation, or breach of fiduciary duty by the registrant; 4. Any final judgment in a civil action involving negligence in the practice of public accounting by the registrant; and 5. All convictions of the registrant of any felony, or any crime involving accounting or tax violations, dishonesty, fraud, misrepresentation, embezzlement, theft, forgery, perjury, or breach of fiduciary duty.  B. A registrant, individual, or firm required to report under subsection (A) shall make the report in the form of a written letter and ensure that the report is received by the Board within 30 days after the entry of any judgment or suspension or revocation of the registrant’s right to practice before any agency. The registrant, 

Page 4 of 36    NASBA ED & Board Staff Conference – March 2014  

individual, or firm shall ensure that the letter contains the following information:  1. Description of the registrant’s activities that resulted in a suspension or revocation; 2. Final judgment or conviction; 3. Name of the state or federal agency that restricted the registrant’s right to practice; 4. Effective date and length of any practice restriction; 5. Case file number of any court action, civil or criminal; 6. Name and location of the court rendering the final judgment or conviction; and 7. Entry date of the final judgment or conviction.  Arizona Revised Statutes.  A.R.S. 32‐741.  Revocation or suspension of certificate; disciplinary action; letter of concern.  A. After notice and an opportunity for a hearing, the board may revoke or suspend any certificate granted under this chapter and may take disciplinary action concerning the holder of any certificate for any of the following causes:  1. Conviction of a felony under the laws of any state or of the United States if civil rights have not been restored pursuant to title 13, chapter 9 or other applicable recognized judicial or gubernatorial order.  2. Conviction of any crime that has a reasonable relationship to the practice of accounting by a certified public accountant or by a public accountant, including crimes involving accounting or tax violations, dishonesty, fraud, misrepresentation, embezzlement, theft, forgery, perjury or breach of fiduciary duty, regardless of whether civil rights have been restored.  3. Fraud or deceit in obtaining a certificate as a certified public accountant or in obtaining a certificate as a public accountant under this chapter.  4. Dishonesty, fraud or gross or continuing negligence in the practice of accounting.  5. Discipline to the holder of any certificate or other authority to practice or refusal to renew the certificate or other authority to practice as a certified public accountant by any other state or foreign country for any cause other than failure to pay license or registration fees.  6. Violation of any of the provisions of this chapter, of title 44, chapter 12, article 13 or of any fraud provisions of the federal securities laws.  7. Final judgment in a civil action if the court makes findings of accounting violations, dishonesty, fraud, misrepresentation or breach of fiduciary duty.  8. Final judgment or order in a civil action or administrative proceeding if the court or agency makes findings of violations of any fraud provisions of the laws of this state or federal securities laws.  9. Violation of any decision, order or rule issued or adopted by the board.  10. Suspension or revocation for cause of the right to practice before the federal securities exchange commission or any other governmental body or agency or the public company accounting oversight board or its successor.  11. Offering or accepting commissions or contingency fees for services rendered for clients for whom the attest function is also offered or rendered in the performance of the practice of accounting unless:  (a) The fee is fixed by a court or another public authority.  (b) In a tax matter, the fee is determined based on the results of a judicial proceeding or the finding of a governmental agency.  12. Failing to disclose to a client that the registrant has received or expects to receive a commission from a third party for any engagement, services or product sales involving services other than the attest function.  13. Making any false or misleading statement or verification in support of an application for a certificate, registration or permit filed by another person.  14. Making a false or misleading statement:  (a) To the board or its designated agent.  (b) On a form required by the board.  (c) In written correspondence to the board.  15. Failing to respond in writing or furnish information in a timely manner to the board or its designated agent, if the information is legally requested by the board and is in the registrant's possession or control.  B. Pursuant to title 41, chapter 6, article 10, the board may summarily suspend the certificate of any certified 

Page 5 of 36    NASBA ED & Board Staff Conference – March 2014  

public accountant or public accountant pending proceedings for revocation or other disciplinary action on the receipt of either of the following:  1. A notice of conviction of any crime that has a reasonable relationship to the practice of accounting, including crimes involving accounting or tax violations, dishonesty, fraud, misrepresentation, embezzlement, theft, forgery, perjury or breach of fiduciary duty or of any felony.  2. A final judgment or order in a civil action or administrative proceeding in which the court or agency made findings of violations of any fraud provisions of the laws of this state or federal securities laws.  C. The board may take disciplinary action against a holder of a certificate issued pursuant to this chapter who is practicing accounting even if the person is not representing to the public that the person is a certified public accountant or a public accountant and even if the person is practicing accounting in a firm that is not registered by the board.  D. The board may issue a letter of concern if, in the opinion of the board, there is insufficient evidence to support disciplinary action against the registrant, but the board believes, as a result of information ascertained during an investigation, that continuation of the activities that led to the investigation may result in future board action against the registrant. A registrant may file a response with the board within thirty days after receipt of a letter of concern. Letters of concern issued by the board and records kept by the board in connection with investigations leading to letters of concern are confidential and are not public records. 

 Arkansas  Arkansas Accountancy Law.  Title 17.  Subchapter 17‐12‐303.  Criminal Background Check.  (a) The Arkansas State Board of Public Accountancy may require each applicant for a new or reinstated license as a certified public accountant, including reciprocity applicants, or public accountant to apply for or authorize the board to obtain state and national criminal background checks to be conducted by the Identification Bureau of the Department of Arkansas State Police and the Federal Bureau of Investigation.  (b) The criminal background checks shall conform to the applicable federal standards and shall include the taking of fingerprints.  (c) The applicant shall authorize the release of the criminal background checks to the board and shall be responsible for the payment of any fee associated with the criminal background checks. (d) Upon completion of the criminal background checks, the Identification Bureau of the Department of Arkansas State Police shall forward to the board all information obtained concerning the commission by the applicant of any offense listed in subsection (e) of this section.  (e) Notwithstanding the provisions of § 17‐12‐301, a person convicted of a felony or crime involving moral turpitude or dishonesty in any state or federal court may not receive or hold a license as a certified public accountant or public accountant. (f) (1) The provisions of subsection (e) of this section may be waived by the board upon the request of:  (A) An affected applicant for licensure or registration; or (B) The person holding a license or registration subject to revocation.  (2) Circumstances for which a waiver may be granted shall include, but not be limited to:  (A) The age at which the crime was committed; (B) The circumstances surrounding the crime; (C) The length of time since the crime; (D) Subsequent work history; (E) Employment references; (F) Character references; (G) A conviction or record that has been expunged; and (H) Other evidence demonstrating that the applicant does not pose a threat to the public health, safety, or welfare.  (g) (1) Any information received by the board from the Identification 

Page 6 of 36    NASBA ED & Board Staff Conference – March 2014  

Bureau of the Department of Arkansas State Police under this section is not available for examination except by:  (A) The affected applicant or the applicant's authorized representative; or (B) The person whose license or registration is subject to revocation or his or her authorized representative.  (2) No record, file, or document shall be removed from the custody of the Department of Arkansas State Police.  (3) Only information pertaining to the person making the request may be made available to the affected applicant or the person whose license or registration is subject to revocation. (4) Rights of privilege and confidentiality established in this section shall not extend to any document created for purposes other than the criminal background checks.  (h) The board shall adopt rules and regulations to implement the provisions of this section. 

 California  California Business and Professions Code, Section 144.  (a) Notwithstanding any other provision of law, an agency designated in subdivision (b) shall require an applicant to furnish to the agency a full set of fingerprints for purposes of conducting criminal history record checks. Any agency designated in subdivision (b) may obtain and receive, at its discretion, criminal history information from the Department of Justice and the United States Federal Bureau of Investigation.  (b) Subdivision (a) applies to the following:  (1) California Board of Accountancy.  California Board of Accountancy Regulations, Section 37.5. Fingerprinting and Disclosure Requirements.  (a) A licensee applying for renewal as a certified public accountant or public accountant who has not previously submitted fingerprints as a condition of licensure or for whom an electronic record of the licensee's fingerprints does not exist in the Department of Justice's criminal offender record identification database shall successfully complete a state and federal level criminal offender record information search conducted through the Department of Justice by the licensee's renewal date that occurs after December 31, 2013.  (1) A licensee shall retain for at least three years as evidence of having complied with subdivision (a) either a receipt showing that he or she has electronically transmitted his or her fingerprint images to the Department of Justice or, for those who did not use an electronic fingerprint system, a receipt evidencing that his or her fingerprints were recorded and submitted to the board. (2) An applicant for renewal shall pay the actual cost of compliance with subdivision (a). (3) As a condition of petitioning the board for reinstatement of a revoked or surrendered license, an applicant shall have complied with subdivision (a).  (4) The board shall waive the requirements of this section if the license is renewed in an inactive or retired status or if the licensee is actively serving in the United States military. The board shall not return a license to active status until the licensee has complied with subdivision (a).  (b) As a condition of renewal, a certified public accountant or public accountant licensee shall disclose on the renewal form whether he or she has submitted a record of fingerprints in compliance with subdivision (a). (c) As a condition of renewal, an applicant for renewal as a certified public accountant or public accountant shall disclose on the renewal form whether he or she has been convicted, as defined in Section 490 of the Business and Professions Code, of any violation of the law in this or any other state, the United States, or other country, omitting traffic infractions under $1,000 not involving alcohol, dangerous drugs, or controlled substances.  (d) As a condition of renewal, 

Page 7 of 36    NASBA ED & Board Staff Conference – March 2014  

an applicant for renewal as a certified public accountant or public accountant shall disclose on the renewal form whether he or she has experienced the cancellation, revocation, or suspension of a certificate or right to practice by any other state or foreign body.  (e) Failure to provide all of the information required by this section renders an application for renewal incomplete and the license will not be renewed until the licensee demonstrates compliance with all requirements.  California Business and Professions Code, Sections 480 – 489.  480.  (a) A board may deny a license regulated by this code on the grounds that the applicant has one of the following:  (1) Been convicted of a crime. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Any action that a board is permitted to take following the establishment of a conviction may be taken when the time for appeal has elapsed, or the judgment of conviction has been affirmed on appeal, or when an order granting probation is made suspending the imposition of sentence, irrespective of a subsequent order under the provisions of Section 1203.4 of the Penal Code.  (2) Done any act involving dishonesty, fraud, or deceit with the intent to substantially benefit himself or herself or another, or substantially injure another.  (3) (A) Done any act that if done by a licentiate of the business or profession in question, would be grounds for suspension or revocation of license.  (B) The board may deny a license pursuant to this subdivision only if the crime or act is substantially related to the qualifications, functions, or duties of the business or profession for which application is made.  (b) Notwithstanding any other provision of this code, no person shall be denied a license solely on the basis that he or she has been convicted of a felony if he or she has obtained a certificate of rehabilitation under Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code or that he or she has been convicted of a misdemeanor if he or she has met all applicable requirements of the criteria of rehabilitation developed by the board to evaluate the rehabilitation of a person when considering the denial of a license under subdivision (a) of Section 482.  (c) A board may deny a license regulated by this code on the ground that the applicant knowingly made a false statement of fact required to be revealed in the application for the license.  481.  Each board under the provisions of this code shall develop criteria to aid it, when considering the denial, suspension or revocation of a license, to determine whether a crime or act is substantially related to the qualifications, functions, or duties of the business or profession it regulates.  482.  Each board under the provisions of this code shall develop criteria to evaluate the rehabilitation of a person when:  (a) Considering the denial of a license by the board under Section 480; or (b) Considering suspension or revocation of a license under Section 490. Each board shall take into account all competent evidence of rehabilitation furnished by the applicant or licensee.  484.  No person applying for licensure under this code shall be required to submit to any licensing board any attestation by other persons to his good moral character.  485.  Upon denial of an application for a license under this chapter or Section 496, the board shall do either of the following:  (a) File and serve a statement of issues in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.  (b) Notify the applicant that the application is denied, stating (1) the reason for the denial, and (2) that the applicant has the right to a hearing under Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code if written request for hearing is made within 60 days after 

Page 8 of 36    NASBA ED & Board Staff Conference – March 2014  

service of the notice of denial. Unless written request for hearing is made within the 60‐day period, the applicant's right to a hearing is deemed waived.  Service of the notice of denial may be made in the manner authorized for service of summons in civil actions, or by registered mail addressed to the applicant at the latest address filed by the applicant in writing with the board in his or her application or otherwise. Service by mail is complete on the date of mailing. 486.  Where the board has denied an application for a license under this chapter or Section 496, it shall, in its decision, or in its notice under subdivision (b) of Section 485, inform the applicant of the following:  (a) The earliest date on which the applicant may reapply for a license which shall be one year from the effective date of the decision, or service of the notice under subdivision (b) of Section 485, unless the board prescribes an earlier date or a later date is prescribed by another statute.  (b) That all competent evidence of rehabilitation presented will be considered upon a reapplication.  Along with the decision, or the notice under subdivision (b) of Section 485, the board shall serve a copy of the criteria relating to rehabilitation formulated under Section 482.  487.  If a hearing is requested by the applicant, the board shall conduct such hearing within 90 days from the date the hearing is requested unless the applicant shall request or agree in writing to a postponement or continuance of the hearing. Notwithstanding the above, the Office of Administrative Hearings may order, or on a showing of good cause, grant a request for, up to 45 additional days within which to conduct a hearing, except in cases involving alleged examination or licensing fraud, in which cases the period may be up to 180 days. In no case shall more than two such orders be made or requests be granted.   488.  Except as otherwise provided by law, following a hearing requested by an applicant pursuant to subdivision (b) of Section 485, the board may take any of the following actions:  (a) Grant the license effective upon completion of all licensing requirements by the applicant.  (b) Grant the license effective upon completion of all licensing requirements by the applicant, immediately revoke the license, stay the revocation, and impose probationary conditions on the license, which may include suspension.  (c) Deny the license.  (d) Take other action in relation to denying or granting the license as the board in its discretion may deem proper.  489.  Any agency in the department which is authorized by law to deny an application for a license upon the grounds specified in Section 480 or 496, may without a hearing deny an application upon any of those grounds, if within one year previously, and after proceedings conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, that agency has denied an application from the same applicant upon the same ground.  BPC Code.  5063.  (a) A licensee shall report to the board in writing of the occurrence of any of the following events occurring on or after January 1, 1997, within 30 days of the date the licensee has knowledge of these events:  (1) The conviction of the licensee of any of the following: (A) A felony. (B) Any crime related to the qualifications, functions, or duties of a public accountant or certified public accountant, or to acts or activities in the course and scope of the practice of public accountancy. (C) Any crime involving theft, embezzlement, misappropriation of funds or property, breach of a fiduciary responsibility, or the preparation, publication, or dissemination of false, fraudulent, or materially misleading financial statements, reports, or information. As used in this section, a conviction includes the initial plea, verdict, or finding of guilt, pleas of no contest, or pronouncement of sentence by a trial court even though 

Page 9 of 36    NASBA ED & Board Staff Conference – March 2014  

that conviction may not be final or sentence actually imposed until appeals are exhausted.  (2) The cancellation, revocation, or suspension of a certificate, other authority to practice or refusal to renew a certificate or other authority to practice as a certified public accountant or a public accountant, by any other state or foreign country.  (3) The cancellation, revocation, or suspension of the right to practice as a certified public accountant or a public accountant before any governmental body or agency.  (b) A licensee shall report to the board in writing the occurrence of any of the following events occurring on or after January 1, 2003, within 30 days of the date the licensee has knowledge of the events: (1) Any restatement of a financial statement and related disclosures by a client audited by the licensee. (2) Any civil action settlement or arbitration award against the licensee relating to the practice of public accountancy where the amount or value of the settlement or arbitration award is thirty thousand dollars ($30,000) or greater and where the licensee is not insured for the full amount of the award.  (3) Any notice of the opening or initiation of a formal investigation of the licensee by the Securities and Exchange Commission or its designee.  (4) Any notice from the Securities and Exchange Commission to a licensee requesting a Wells Submission.  (5) Any notice of the opening or initiation of an investigation by the Public Company Accounting Oversight Board or its designee, as defined pursuant to subdivision (g).  (c) A licensee shall report to the board in writing, within 30 days of the entry of the judgment, any judgment entered on or after January 1, 2003, against the licensee in any civil action alleging any of the following: (1) Dishonesty, fraud, gross negligence, or negligence. (2) Breach of fiduciary responsibility. (3) Preparation, publication, or dissemination of false, fraudulent, or materially misleading financial statements, reports, or information. (4) Embezzlement, theft, misappropriation of funds or property, or obtaining money, property, or other valuable consideration by fraudulent means or false pretenses, or other errors or omissions.  (5) Any actionable conduct by the licensee in the practice of public accountancy, the performance of bookkeeping operations, or other professional practice.  (d) The report required by subdivisions (a), (b), and (c) shall be signed by the licensee and set forth the facts which constitute the reportable event. If the reportable event involves the action of an administrative agency or court, then the report shall set forth the title of the matter, court or agency name, docket number, and dates of occurrence of the reportable event.  (e) A licensee shall promptly respond to oral or written inquiries from the board concerning the reportable events, including inquiries made by the board in conjunction with license renewal. (f) Nothing in this section shall impose a duty upon any licensee to report to the board the occurrence of any of the events set forth in subdivision (a), (b), or (c) either by or against any other licensee.  (g) The board may adopt regulations to further define the reporting requirements of this section. 

 Colorado  Accountants Practice Act.  12‐2‐13(1)(e)(f).  The law permits the Board to deny, revoke, etc., a license for among other things a conviction of a felony or a conviction of any crime.  Rule 6.5.  DISCLOSURE – LICENSEES.  A. A Licensee must notify the Board within 45 days of any of the following events relating to the Licensee:  1. Imposition of Discipline by:  a. The SEC, PCAOB, or IRS.  b. Another State board of accountancy for any cause other than failure to pay a 

Page 10 of 36    NASBA ED & Board Staff Conference – March 2014  

professional license fee by the due date.  c. Any other federal or State agency or any professional association or entity regarding the Licensee’s conduct while rendering Professional Services.  d. Any federal or State taxing, insurance, or securities regulatory authority.  e. Any non‐U.S. authority or credentialing body that regulates the practice of accountancy.  2. Notice of disciplinary charges filed by the SEC, PCAOB, IRS, or another State board of accountancy, or a federal or State agency concerning the Practice of Public Accounting or a non‐U.S. authority or credentialing body that regulates the Practice of Public Accounting.  3. Initiation of a civil proceeding or an alternative dispute resolution proceeding by a governmental entity relating to an audit report for a public or non‐public company.  4. Judgment, settlement, or resolution of a civil proceeding or an alternative dispute resolution proceeding by a governmental entity relating to an audit report for a public or non‐public company. 5. Initiation of an administrative proceeding or disciplinary proceeding by any federal, State, or non‐U.S. agency, board, or administrative or licensing authority, or any professional association or entity regarding an audit report for a public or non‐public company. 6. Any decision, judgment, settlement, or resolution of an administrative proceeding or disciplinary proceeding by any federal, State, or non‐U.S. agency, board, or administrative or licensing authority, or any professional association or entity regarding an audit report for a public or non‐public company.  7. Any judgment, award, or settlement of a civil action or arbitration proceeding of $150,000 or more in which the Licensee was a party if the action or proceeding included any allegation of negligence, violation of specific standards of practice, fraud, or misappropriation of funds in the Practice of Public Accounting or during employment. 8. A criminal charge against or a conviction of the Licensee, deferred prosecution, or a plea of guilty or nolo contendere to a crime by the Licensee if: a. the crime is a felony under the laws of any state, or of the United States, or of any territory or insular possession of the United States, or the District of Columbia or any non‐U.S. jurisdiction; or b. an element of the crime is dishonesty or fraud.  9. Occurrence of any matter that must be reported by the Licensee to the PCAOB pursuant to the Sarbanes‐Oxley Act of 2002, 15 U.S.C. sec. 7201 et seq., and PCAOB Rules and forms adopted pursuant thereto. B. The notice to the Board shall include the following information regarding the reportable event:  1. If the reportable event is a disciplinary proceeding, alternative dispute resolution proceeding, administrative proceeding, or civil action by any entity referenced in Rule 6.5.A.1, the name of the entity, its jurisdiction, the case name, the docket or proceeding or case number by which it is designated, a description of the matter, or a copy of the document initiating the action or proceeding and, if the matter has been adjudicated or settled, a copy of the consent decree, order, or decision.  2. If the reportable event is a criminal conviction or plea, the court, its jurisdiction, the case name, the case number, and a description of the matter or a copy of the indictment or charges, and, if the matter has been adjudicated, a copy of the judgment of conviction.  3. If the reportable event concerns a civil action or arbitration proceeding, the court or arbiter, the jurisdiction, the case name, the case number, a description of the matter, or a copy of the complaint, and a copy of the verdict, the court or arbitration decision, or, if settled, the court’s order of dismissal.  C. The reporting Licensee may submit a written explanatory statement to be included in the Board’s records.  D. Documents provided to the Board shall be closed to public inspection if federal or State statute, rule, or regulation so provides.  E. This Rule shall apply to any reportable event that occurs on or after the Rule’s effective date.  

Page 11 of 36    NASBA ED & Board Staff Conference – March 2014  

Rule 12.7 (CPA Firms).  12.7 DISCLOSURES.  A. A Licensee must notify the Board in a manner prescribed by the Board within 45 days of any of the following events relating to the Licensee:  1. Imposition of discipline by:  a. The SEC, the PCAOB, or the IRS.  b. Another board of accountancy for any cause other than failure to pay a registration fee by the due date.  c. Any other federal or State agency or any professional association or entity regarding the registrant’s conduct in providing Professional Services.  d. Any federal or State taxing, insurance, or securities regulatory authority.  e. Any non‐U.S. authority or credentialing body that regulates the practice of accountancy for any cause other than failure to pay a registration fee by the due date.   2. Notice of disciplinary charges concerning the practice of accountancy filed by the SEC, PCAOB, IRS, or another board of accountancy, or a federal or State agency, or a non‐U.S. authority or credentialing body that regulates the practice of accountancy.  3. Initiation of a civil proceeding or an alternative dispute resolution proceeding by a governmental entity relating to an audit report for a public or non‐public company.  4. Judgment, settlement, or resolution of a civil proceeding or an alternative dispute resolution proceeding by a governmental entity relating to an audit report for a public or non‐public company.  5. Initiation of an administrative proceeding or disciplinary proceeding by any federal, State, or non‐U.S. agency, board, or administrative or registration authority, or any professional association or entity regarding an audit report for a public or non‐public company.  6. Decision, judgment, settlement, or resolution of an administrative proceeding or disciplinary proceeding by any federal, State, or non‐U.S. agency, board, or administrative or registration authority, or any professional association or entity regarding an audit report for a public or non‐public company.  7. Any judgment, award, or settlement of a civil action or arbitration proceeding of $150,000 or more in which the Licensee was a party if the action or proceeding included any allegation of gross negligence, violation of a specific standard of practice, fraud, or misappropriation of funds in the Practice of Public Accounting or during an engagement.  8. A criminal charge against or a conviction of the Licensee, deferred prosecution, or a plea of guilty or nolo contendere to a crime by the Licensee if:  a. the crime is a felony under the laws of any state, or of the United States or of any territory or insular possession of the United States, or the District of Columbia or any non‐U.S. jurisdiction; or b. an element of the crime is dishonesty or fraud.  9. Occurrence of any matter that must be reported by the Licensee to the PCAOB pursuant to the Sarbanes‐Oxley Act of 2002, U.S.C. sec. 7201 et seq., and PCAOB Rules and forms adopted pursuant thereto.  B. The notice to the Board must include the following information regarding the reportable event:  1. If the reportable event is a disciplinary proceeding, alternative dispute resolution proceeding, administrative proceeding, or civil action by any governmental entity or professional association or entity, the name of the agency, its jurisdiction, the case name, the docket or proceeding or case number by which it is designated, a description of the matter, or a copy of the document initiating the action or proceeding, and, if the matter has been adjudicated or settled, a copy of the consent decree, order, or decision.  2. If the reportable event is a criminal conviction, charge, or plea, the court, its jurisdiction, the case name, the case number, and a description of the matter or a copy of the indictment or charges, and, if the matter has been adjudicated, a copy of the judgment of conviction.  3. If the reportable event concerns a civil action or arbitration proceeding, the court or arbiter, the jurisdiction, the case name, the case number, a description of the matter, or a copy of the complaint, and a copy of 

Page 12 of 36    NASBA ED & Board Staff Conference – March 2014  

the verdict, the court or arbitration decision, or, if settled, the court’s order of dismissal.  C. The Licensee may submit a written explanatory statement to be included in the Board’s records.   D. Documents provided to the Board shall be closed to public inspection if federal or State statute, rule, or regulation so provides.  E. This Rule shall apply to any reportable event that occurs on or after the Rule’s effective date. 

 Connecticut  Chapter 389.  Sec. 20‐281c. Certificate of certified public accountant.  Good character, education, experience and examination requirements. Examination fee. Registration of certificate. Registration fee. (a) The board shall grant the certificate of "certified public accountant" to any person who meets the good character, education, experience and examination requirements of subsections (b) to (d), inclusive, of this section and upon the payment of a fee of one hundred fifty dollars.  (b) Good character for purposes of this section means lack of a history of dishonest or felonious acts. The board may refuse to grant a certificate on the grounds of failure to satisfy this requirement only if there is a substantial connection between the lack of good character of the applicant and the professional responsibilities of a licensee and if the finding by the board of lack of good character is supported by clear and convincing evidence, and when based upon the prior conviction of a crime, is in accordance with the provisions of section 46a‐80. When an applicant is found to be unqualified for a certificate because of a finding of lack of good character, the board shall furnish the applicant a statement containing the findings of the board and a complete record of the evidence upon which the determination was based. 

 District of Columbia  District of Columbia Official Code.  Section 47‐2853.12.  License, certification, and registration criteria; waiver.  (a) A person applying for licensure, certification, or registration under this subchapter shall establish to the satisfaction of the Mayor that the person:  (1) Has not been convicted of an offense which bears directly on the fitness of the person to be licensed; provided, that this restriction shall not apply to the following occupations, unless the Mayor has issued rules before [May 24, 2005], specifying the criteria for the determination of fitness for licensure based on a specific offense committed by an applicant:   (e) The Mayor may deny a license or certificate to an applicant whose license or certificate to practice an occupation or profession was revoked or suspended in another jurisdiction if the basis of the revocation or suspension would have caused a similar result in the District, or if the applicant is the subject of pending disciplinary action regarding his or her right to practice in another jurisdiction. 

 Guam  22 GCA 35105.  Qualifications for a Certificate as a Certified Public Accountant. (a) The certificate of ‘certified public accountant’ shall be granted to persons of good moral character who meet the education, experience and examination requirements of the following 

Page 13 of 36    NASBA ED & Board Staff Conference – March 2014  

Subsections of this §35105 and rules adopted thereunder and who make application therefor pursuant to §35106 of this Act.  (b) Good moral character for purposes of this §35105 means lack of a history of dishonest or felonious acts. The Board may refuse to grant a certificate or license, on the ground of failure to satisfy this requirement only if there is a substantial connection between the lack of good moral character of the applicant and the professional responsibilities of a licensee and if the finding by the Board of lack of good moral character is supported by clear and convincing evidence. When an applicant is found to be unqualified for a certificate or license because of a lack of good moral character, the Board shall furnish the applicant a statement containing the findings of the Board, a complete record of the evidence upon which the determination was based, and a notice of the applicant’s right of appeal.  25 GAR 2105.  Permits to Practice ‐ Individual. (a) Applications.  (3) The application shall be certified under penalty of perjury, by the applicant, to such matters the Board may include in the application and shall state that the applicant has not knowingly engaged in any unlawful acts. 

 Hawaii  Hawaii Revised Statutes.  Section 436B‐10.  Application and requirements for licensure. (a) Application for a license shall be made on an application form to be furnished by the licensing authority. An applicant shall provide the following information on the application form:  (1) The applicant's legal name; (2) Affirmation that the applicant is beyond the age of majority; (3) The applicant's current residence, business and mailing addresses, and phone numbers; (4) The applicant's social security number if the licensing authority is authorized by federal law to require the disclosure; (5) The date and place of any conviction of a penal crime directly related to the profession or vocation in which the applicant is applying for licensure, unless the conviction has been expunged or annulled, or is otherwise precluded from consideration by section 831‐3.1; (6) Proof that the applicant is a United States citizen, a United States national, or an alien authorized to work in the United States; (7) Disclosure of similar licensure in any state or territory; (8) Disclosure of disciplinary action by any state or territory against any license held by the applicant; and (9) Any other information the licensing authority may require to investigate the applicant's qualifications for licensure. Failure to provide the above information and pay the required fees shall be grounds to deny the application for licensure. (1) Beyond the age of majority; and (2) A United States citizen, a United States national, or an alien authorized to work in the United States.   Section 436B‐16.  Notice of judgments, penalties. (a) Each licensee shall provide written notice within thirty days to the licensing authority of any judgment, award, disciplinary sanction, order, or other determination, which adjudges or finds that the licensee is civilly, criminally, or otherwise liable for any personal injury, property damage, or loss caused by the licensee's conduct in the practice of the licensee's profession or vocation. A licensee shall also give notice of such determinations made in other jurisdictions.  (b) In addition to any other penalties provided by law, the failure of a licensee to comply with the provisions of this section is a violation punishable by a fine of not less than $100 for the first violation, $250 to $500 for the 

Page 14 of 36    NASBA ED & Board Staff Conference – March 2014  

second violation, and $500 to $1,000 for subsequent violations. Any action taken to impose or collect the fine provided for in this subsection shall not be considered a criminal action. 

 Kentucky  Kentucky Administrative Regulations.  201 KAR 1:190 Sec 4.  Computer‐based examination sections, applications, and procedures.  Section 4. Initial Examination Applicants.  An applicant shall submit an application to sit for the examination. The applicant shall submit:  (1) A completed "Application for the Certified Public Accountant Examination" that includes the following information: (a) The applicant's name, address, primary and secondary telephone numbers, date of birth, mother’s maiden name, and Social Security number. If the applicant does not have a Social Security number then the candidate shall submit an identification number issued by a federal agency that has authorized the candidate to enter the United States; (b) The state of which the applicant is a legal resident; (c) An e‐mail address; (d) Whether the applicant has: 1. Ever changed his or her name; and if so, a list of the prior names;  2. Taken the Uniform CPA Examination or the computer‐based certified public accountant examination before; and if so, the date and state where it was taken; 3. Been convicted, plead guilty or no contest to a felony or misdemeanor, other than a minor traffic violation; and if so, a copy of the judgment, sentence of conviction, and a letter of explanation shall be attached to the application; 4. Been denied admission to the Uniform CPA Examination or the computer‐based certified public accountant examination; and if so, a letter explaining the reason, date, and jurisdiction of denial shall be attached to the application; and 5. Had disciplinary action taken against any professional license; and if so, a letter indicating the jurisdiction, date of action, and an explanation of the circumstances shall be attached to the application;  Kentucky Revised Statutes.  KRS 325.261.  Qualifications for licensure as certified public accountant.  The license of "certified public accountant" shall be granted by the board to any person who satisfies the following requirements:  (2) Is of good moral character. 

 Louisiana  Louisiana Revised Statutes.  Section 37.73.  Definitions.  (6) "Good moral character" means a lack of history of dishonest or felonious acts.   Section 37.75.  Qualifications for a certificate as a certified public accountant.  A. A certificate of certified public accountant shall be granted to persons of good moral character who meet the education, experience, and examination requirements of this Section and who make application to the board. B.(1) The board may refuse to grant a certificate on the grounds of failure to satisfy the requirement of good moral character only if there exists a substantial connection between the lack of good moral character of the applicant and the professional responsibilities of a licensee and if the findings of the board are supported by clear and convincing evidence. (2) When an applicant is found to be unqualified for a certificate because of lack of good moral character, the board shall furnish the applicant with a statement containing the findings of the 

Page 15 of 36    NASBA ED & Board Staff Conference – March 2014  

board, records of evidence upon which the determination is made, and a notice of the applicant's right of appeal. 

 Maryland  Annotated Code of Maryland.  § 2‐315. Denials, reprimands, suspensions, and revocations ‐‐ Grounds; license certificate.   (a) Grounds. ‐‐ (1) Subject to the hearing provisions of § 2‐317 of this subtitle, the Board, on the affirmative vote of a majority of its members, may deny a license to any applicant, reprimand any licensee, or suspend or revoke a license if the applicant or licensee:  (i) fraudulently or deceptively obtains or attempts to obtain a license for the applicant or licensee or for another; (ii) fraudulently or deceptively uses a license; (iii) under the laws of the United States or of any state, is convicted of: 1. a felony; or 2. a misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to practice certified public accountancy; (iv) is guilty of fraud or other dishonesty in the practice of accountancy; (v) is guilty of gross negligence in the practice of accountancy; (vi) violates any provision of Subtitle 6 of this title; (vii) has had the right to practice as a certified public accountant in another state denied, revoked, or suspended; (viii) has been sanctioned in another state in a matter relating to the practice of public accountancy; (ix) has had the renewal of the right to practice as a certified public accountant in another state denied for any cause other than failure to pay a renewal fee; (x) has had the right to practice as a certified public accountant before any unit of the State or federal government revoked or suspended; (xi) has been sanctioned by any unit of State or federal government, or any regulatory entity established by law, for an act or omission that directly relates to the fitness of the applicant or licensee to practice public accountancy; or (xii) violates a rule of professional conduct adopted by the Board.  (b) Facts considered. ‐‐ The Board shall consider the following facts in the granting, denial, renewal, suspension, or revocation of a license or the reprimand of a licensee when an applicant or licensee is convicted of a felony or misdemeanor described in subsection (a)(1)(iii) of this section:  (1) the nature of the crime; (2) the relationship of the crime to the activities authorized by the license; (3) with respect to a felony, the relevance of the conviction to the fitness and qualification of the applicant or licensee to practice certified public accountancy; (4) the length of time since the conviction; and (5) the behavior and activities of the applicant or licensee before and after the conviction. (c) Surrender of license certificate. ‐‐ On suspension or revocation of a license, the holder shall surrender to the Board the license certificate of the holder.  (d) Return of license certificate. ‐‐ At the end of a suspension period, the Board shall return to the licensee the license certificate surrendered under this section.  COMAR.  09.24.01.06.  Effective May 1, 2014.  Code of Professional Conduct.  J. Requirement to Disclose Conviction or Sanction to Board.  (1) A licensee or permit holder shall disclose to the Board that the licensee or permit holder has been:  (a) Convicted of a felony under the laws of the United States or any state; (b) Convicted of a misdemeanor under the laws of the United States or any state; or (c) Sanctioned by a unit of federal or state government, or any regulatory entity established by law.  (2) The disclosure under §J(1) of this regulation shall be made:  (a) In writing; and (b) Within 30 days of the date of the conviction or sanction.  (3) The fact that a 

Page 16 of 36    NASBA ED & Board Staff Conference – March 2014  

licensee or permit holder has appealed a conviction or sanction does not relieve the licensee or permit holder of the obligation to comply with §J of this regulation. 

 Minnesota  Minnesota Statutes  326A.08.  Subd. 5.Actions against persons or firms.  (a) The board may, by order, deny, refuse to renew, suspend, temporarily suspend, or revoke the application, or practice privileges, registration or certificate of a person or firm; censure or reprimand the person or firm; prohibit the person or firm from preparing tax returns or reporting on financial statements; limit the scope of practice of any licensee; limit privileges under section 326A.14; refuse to permit a person to sit for examination; or refuse to release the person's examination grades if the board finds that the order is in the public interest and that, based on a preponderance of the evidence presented, the person or firm: (1) has violated a statute, rule, or order that the board has issued or is empowered to enforce; (2) has engaged in conduct or acts that are fraudulent, deceptive, or dishonest whether or not the conduct or acts relate to performing or offering to perform professional services, providing that the fraudulent, deceptive, or dishonest conduct or acts reflect adversely on the person's or firm's ability or fitness to provide professional services; (3) has engaged in conduct or acts that are negligent or otherwise in violation of the standards established by board rule, where the conduct or acts relate to providing professional services, including in the filing or failure to file the licensee's income tax returns; (4) has been convicted of, has pled guilty or nolo contendere to, or has been sentenced as a result of the commission of a felony or crime, an element of which is dishonesty or fraud; has been shown to have or admitted to having engaged in acts or practices tending to show that the person or firm is incompetent; or has engaged in conduct reflecting adversely on the person's or firm's ability or fitness to provide professional services, whether or not a conviction was obtained or a plea was entered or withheld and whether or not dishonesty or fraud was an element of the conduct; (5) employed fraud or deception in obtaining a certificate, permit, registration, practice privileges, renewal, or reinstatement or in passing all or a portion of the examination; (6) has had the person's or firm's permit, registration, practice privileges, certificate, right to examine, or other similar authority revoked, suspended, canceled, limited, or not renewed for cause, or has committed unprofessional acts for which the person or firm was otherwise disciplined or sanctioned, including, but not limited to, being ordered to or agreeing to cease and desist from prescribed conduct, in any state or any foreign country; (7) has had the person's or firm's right to practice before any federal, state, other government agency, or Public Company Accounting Oversight Board revoked, suspended, canceled, limited, or not renewed for cause, or has committed unprofessional acts for which the person or firm was otherwise disciplined or sanctioned, including, but not limited to, being ordered to or agreeing to cease and desist from prescribed conduct; (8) failed to meet any requirement for the issuance or renewal of the person's or firm's certificate, registration or permit, or for practice privileges; (9) with respect to temporary suspension orders, has committed an act, engaged in conduct, or committed practices that may result or may have resulted, in the opinion of the board or the complaint committee if authorized by the board, in an immediate threat to the public; (10) has engaged in any conduct reflecting adversely upon the person's or firm's fitness to perform services while a licensee, individual granted privileges 

Page 17 of 36    NASBA ED & Board Staff Conference – March 2014  

under section 326A.14, or a person registered under section 326A.06, paragraph (b); or (11) has, prior to a voluntary surrender of a certificate or permit to the board, engaged in conduct which at any time resulted in the discipline or sanction described in clause (6) or (7).  Minnesota Rule.  1105.2450.  GOOD MORAL CHARACTER.  A. Applicants have the burden of demonstrating good moral character as defined by Minnesota Statutes, section 326A.03, subdivision 1, in the manner specified by the board in its application forms.  B. Prima facie evidence of a lack of good moral character includes: (1) any deferred prosecution agreement involving an admission of wrongdoing, or any criminal conviction, including conviction following a guilty plea or plea of nolo contendre, for any felony or any crime, an essential element of which is fraud, dishonesty, or deceit, or any other crime that evidences an unfitness of the applicant to practice public accountancy in a competent manner and consistent with the public safety; (2) revocation of any license or other authority to practice by or before any state, federal, foreign, or other licensing or regulatory authority; or (3) any act which would be grounds for revocation or suspension of a license if committed by a licensee of the board.  C. Factors the board shall consider in determining rehabilitation of moral character include the following: (1) completion of criminal probation, restitution, community service, military, or other public service; (2) the passage of time without the commission of any further crime or act demonstrating a lack of moral character under item B; or (3) the expungement of any conviction or reduction of a conviction from a felony to misdemeanor.   Minnesota Rule.  1105.3500.  INTERNATIONAL RECIPROCITY.  Subpart 1. Foreign countries.  The board may designate a professional accounting credential or professional registration issued in a foreign country as generally equivalent to a CPA license and:  A. may rely on the International Qualifications Appraisal Board for evaluation of foreign credential equivalency; B. may accept a foreign accounting credential in partial satisfaction of its domestic credentialing requirements if:  (1) the holder of the foreign accounting credential met the issuing body's education requirement and passed the issuing body's examination used to qualify its own domestic candidates; and (2) the foreign credential is valid and in good standing at the time of application for a domestic credential; and C. if the foreign jurisdiction that granted the accounting credential to the foreign applicant is a party to a currently valid mutual recognition agreement with NASBA, the credential holder is presumed to be generally equivalent and is subject to other qualifying requirements as provided in the mutual recognition agreement.  Subp. 2. Qualifying examinations.  The board shall satisfy its requirements through qualifying examinations that the holder of a foreign credential deemed by the board to be generally equivalent to a CPA certificate possesses adequate knowledge of United States practice standards and the board's regulations. The board may rely on the National Association of State Boards of Accountancy, the American Institute of Certified Public Accountants, or other professional bodies to develop, administer, and grade the qualifying examinations. The board shall specify the qualifying examinations and process by resolution. Subp. 3. Requirements for renewal.  An applicant for renewal of a CPA certificate originally issued in reliance on a foreign accounting credential shall: A. make application for renewal at the time and in the manner prescribed by the board for all other certificate renewals; B. pay the fees as prescribed for all other certificate renewals; C. if the applicant has a foreign credential in effect at the time of 

Page 18 of 36    NASBA ED & Board Staff Conference – March 2014  

the application for renewal of the CPA certification, present documentation from the foreign accounting credential issuing body that the applicant's foreign credential has not been suspended or revoked and the applicant is not the subject of a current investigation. If the applicant for renewal no longer has a foreign credential, the applicant must present proof from the foreign credentialing body that the applicant for renewal was not the subject of any disciplinary proceedings or investigations at the time that the foreign credential lapsed; and D. either show completion of continuing professional education substantially equivalent to that required under part 1105.3000 within the three‐year period preceding renewal application, or petition the board for complete or partial waiver of the CPE requirement based on the ratio of foreign practice to practice in this state.  Subp. 4. Self‐reporting. The holder of a license or practice privilege issued or granted by the board in reliance on a foreign accounting credential or license shall report any investigations undertaken, or sanctions imposed, by a foreign credentialing or licensing body against the CPA's foreign credential or license, or any discipline ordered by any regulatory authority having jurisdiction over the holder's conduct in the practice of accountancy.  Subp. 5. Sanctions against foreign credentials.  Suspension or revocation of, or refusal to renew, the CPA's foreign accounting credential by the foreign credentialing body may be evidence of conduct reflecting adversely upon the CPA's fitness to retain the certificate and may be a prima facie basis for board action.  Subp. 6. Conviction.  Conviction of a felony or any crime involving dishonesty or fraud under the laws of a foreign country is evidence of conduct reflecting adversely on the CPA's fitness to retain the certificate and is a prima facie basis for board action.  Subp. 7. Notification. The board shall notify the appropriate foreign credentialing authorities of any sanctions imposed against a CPA.  Subp. 8. Joint investigations.  The board may participate in joint investigations with foreign credentialing bodies and may rely on evidence supplied by those bodies in disciplinary hearings.  Minnesota Rule.  1105.5600.  GROUNDS FOR ENFORCEMENT ACTION.  Subpart 1. Grounds for disciplinary action.  The grounds for revocation and suspension of certificates, registrations, and permits, and other disciplinary action against licensees, certificate holders, applicants, and individuals with privileges under Minnesota Statutes, section 326A.14, are specified in Minnesota Statutes, section 326A.08. In addition, the grounds include the following particular grounds for disciplinary action:  A. fraud, dishonesty, or deceit in obtaining a certificate, registration, or permit, within the meaning of Minnesota Statutes, section 326A.08, subdivision 5, paragraph (a), clause (5), including the submission to the board of any knowingly false or forged evidence in, or in support of, an application for a certificate, registration, or permit, and cheating on an examination as defined in this chapter; B. dishonesty, fraud, deceit, or gross negligence through knowingly or through gross negligence, by making misleading, deceptive, or untrue representations in the performance of services; C. violations of the act or rules promulgated under the act, within the meaning of Minnesota Statutes, section 326A.08, subdivision 5, paragraph (a), clause (1), including: (1) using the CPA title or providing attest or compilation services in this state without a certificate with an active status, registration, or permit to practice issued under Minnesota Statutes, sections 326A.04 and 326A.05, or without properly qualifying to practice across state lines under the substantial equivalency provision of the act; (2) using or attempting to use a certificate, registration, or permit which has been 

Page 19 of 36    NASBA ED & Board Staff Conference – March 2014  

suspended or revoked; (3) making any false, deceptive, or misleading statement, in support of an application for a certificate, registration, or permit filed by another; (4) failure of a licensee to provide any explanation requested by the board regarding evidence submitted by the licensee in support of an application filed by another, or regarding a failure or refusal to submit such evidence; and failure by a licensee to furnish for inspection, upon request by the board or its representative, documentation relating to any evidence submitted by the licensee in support of such an application; (5) failure to satisfy the continuing professional education requirements in Minnesota Statutes, section 326A.04, subdivision 4, and failure to comply with the continuing education requirements of this chapter; (6) failure to comply with professional standards as to the attest or compilation competency requirement for those who supervise attest or compilation engagements and sign reports on financial statements or other compilation communications with respect to financial statements;  (7) failure to comply with the applicable quality review requirements set out in this chapter and Minnesota Statutes, sections 326A.04 and 326A.05, subdivision 8; or (8) making any false, deceptive, or misleading statement in support of a request to the board to accept the voluntary surrender of a certificate, registration, or permit; D. conduct reflecting adversely upon the licensee's fitness to perform services, within the meaning of Minnesota Statutes, section 326A.08, subdivision 5, paragraph (a), clauses (2) and (10), includes:  (1) adjudication as mentally incompetent; (2) fiscal dishonesty of any kind; (3) presenting as one's own a certificate, registration, or permit issued to another; (4) concealment of information regarding violations by other licensees of the act or this chapter when questioned or requested by the board; (5) willfully failing to file a report or record required by state or federal law; willfully impeding or obstructing the filing of a report or record, or inducing another person to impede or obstruct a filing by another; and the making or filing of a report or record which one knows to be false; and (6) incompetence, including:  (a) gross negligence, recklessness, or repeated acts of negligence in the licensee's record of professional practice; or (b) any condition, whether physical or mental, that endangers the public by impairing skill and care in providing professional services.  E. A licensee, applicant, certificate holder, registrant, or person specified in Minnesota Statutes, section 326A.05, subdivision 3, paragraph (c), who is subject to the actions, or has engaged in activities, described in Minnesota Statutes, section 326A.08, subdivision 5, paragraph (a), clause (6) or (7) or has been convicted of, has pled guilty or nolo contendre to, or has been sentenced as a result of the commission of a felony or crime, an element of which is dishonesty or fraud, shall, within 30 days of being subject to or engaging in such actions or activities, notify the board in writing and provide the details of the activities. The notification may be used as a basis for initiating an investigation against the licensee, applicant, certificate holder, registrant, or person specified in Minnesota Statutes, section 326A.05, subdivision 3, paragraph (c), the results of which could result in disciplinary action specified in Minnesota Statutes, section 326A.08.  F. An initial determination by the board not to institute proceedings under Minnesota Statutes, section 326A.08, does not preclude the board from subsequently doing so if relevant information is obtained which, in the opinion of the board, would have resulted in a different determination if the information was known earlier.  Subp. 2. Failing to file a report. A finding, adjudication, consent order, or conviction by a federal or state court, agency, or regulatory authority, or the Public Company Accounting Oversight 

Page 20 of 36    NASBA ED & Board Staff Conference – March 2014  

Board that a licensee has willfully failed to file a required report or record specified in subpart 1, item D, subitem (5), is prima facie evidence of a violation of this part. 

 Missouri  Missouri Revised Statutes.  RSMo 326.280.    License issued, when‐‐reexamination and fees‐‐temporary license issued, when.  1. A license shall be granted by the board to any person who meets the requirements of this chapter and who:  (1) Is a resident of this state or has a place of business in this state or, as an employee, is regularly employed in this state; (2) Has attained the age of twenty‐one years; (3) Is of good moral character;  20 CSR 2010‐2.070.  Renewal of Licenses.  PURPOSE: This rule clarifies requirements of the statutes pertaining to the renewal of the license to practice public accounting by certified public accountants and public accountants in this state. (1) Licenses shall be issued for a licensing period of two (2) years beginning on October 1 and expiring on September 30 and shall be renewed biennially. (2) Each certified public accountant (CPA) shall provide the board with the following information at the time of application for renewal of his or her individual license to practice:  (A) Residence address; (B) Business connection or employer; (C) Business address; (D) Verification that the individual has met the Continuing Professional Education (CPE) requirements as described in Chapter 4; (E) Details regarding any conviction of any criminal offense other than a minor traffic violation whether or not a sentence is imposed or executed; (F) Details regarding any suspension, revocation or cancellation of the certificate or permit to practice by any jurisdiction; details regarding any suspension, revocation or restriction of his or her right to practice by the Internal Revenue Service, Securities Exchange Commission, Public Company Accounting Oversight Board, or any other federal or state agency; (G) Details regarding any judgments rendered against the licensee for professional malpractice; (H) Details regarding any willful violation of the rules and standards of professional conduct governing the practice of public accounting; (I) Each licensee shall report to the board any revocation, suspension, restriction, modification, limitation, reprimand, warning, censure, probation or other final disciplinary action to practice any profession regulated by this chapter, or by another state, territory, federal agency or country, whether voluntarily agreed to by the certified public accountant or applicant, including but not limited to the denial of licensure, surrender of a license, allowing a license to expire or lapse, or discontinuance or limitation of a professional practice while subject to an investigation or while actually under investigation by any licensing authority, branch of the armed forces of the United States of America, court, agency of the state or federal government; and (J) Each licensee shall notify the board in writing within thirty (30) days of any change in subsections (2)(A) through (2)(I) above occurring during the licensing period.   

 Montana  Montana Code Annotated 2013.  37‐1‐105. Reporting disciplinary actions against licensees. The department has the authority and shall require that all boards and department programs require each applicant for licensure or renewal to report any legal or disciplinary action against 

Page 21 of 36    NASBA ED & Board Staff Conference – March 2014  

the applicant that relates to the propriety of the applicant's practice of or fitness to practice the profession or occupation for which the applicant seeks licensure. Failure to furnish the required information, except pursuant to 37‐1‐138, or the filing of false information is grounds for denial or revocation of a license. 

 Nebraska  Nebraska Administrative Code, Title 288.  Chapter 6.002.  Character & Fitness Standards.  002.02 Causes for denial to sit for CPA examination or licensure. The revelation or discovery of any of the following facts from any jurisdiction shall be grounds for denial to sit for the CPA exam or issuance of a Board certificate or an initial permit to practice public accountancy: 1. A civil judgment, criminal conviction or civil penalty an element of which judgment, conviction, or penalty involves dishonesty, fraud, deceit, or misrepresentation; 2. violation of a court order; 3. denial of professional licensure or disciplinary action by a professional regulatory agency or professional organization; 4. conviction of a felony.  002.03 Denial to sit for the Uniform CPA Examination and licensure. The Board may refuse to allow a person to sit for the Uniform CPA Examination or to issue a Board certificate or an initial permit on the grounds of failure to meet the standards as outlined in Subsection 002. If a person is found to be ineligible to sit for the Uniform CPA Examination or to be issued a Board certificate or an initial permit the person shall have the right to a hearing before the Board.  002.04 USE OF INFORMATION. Upon appeal by applicant of a denial under Subsection 002.02, the Board will determine whether the present character and fitness of an applicant qualify the applicant to practice public accountancy, despite the existence of a cause under Subsection 002.02. In making this determination, the following factors should be considered in assigning weight and significance to prior conduct: 1. the applicant's age at the time of the conduct; 2. the recency of the conduct; 3. the reliability of the information concerning the conduct; 4. the seriousness of the conduct; 5. the factors underlying the conduct; 6. the cumulative effect of the conduct or information; 7. the evidence of rehabilitation; 8. the applicant's positive social contributions since the conduct; 9. the applicant's candor in the application process; 10. the materiality of any omissions or misrepresentations. 

 Nevada  NRS  628.190.  Qualifications of applicant for certificate of certified public accountant; issuance of provisional certificate.  1.  Except as otherwise provided in this section and NRS 628.310, a certificate of certified public accountant must be granted by the Board to any person who:  (a) Is a resident of this State or, if not a resident, has designated to the Board an agent who is a resident for notification and service of process; (b)  Is a person who is without any history of acts involving dishonesty or moral turpitude; (c)  Complies with the requirements of education and experience as provided in NRS 628.200; (d)  Has submitted to the Board a complete set of fingerprints and written permission authorizing the Board to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau 

Page 22 of 36    NASBA ED & Board Staff Conference – March 2014  

of Investigation for its report; and (e)  Has passed the examination prescribed by the Board.  2.   The Board may refuse to grant a certificate of certified public accountant to an applicant if he or she has been convicted of a felony in this State or an offense in another state or jurisdiction which would be a felony if committed in this State.  3.  The Board may issue a provisional certificate to an applicant until the Board receives the report from the Federal Bureau of Investigation.  NRS 628.390.  Grounds; penalties; private censure prohibited; orders imposing discipline deemed public records.  1.  After giving notice and conducting a hearing, the Board may revoke, or may suspend for a period of not more than 5 years, any certificate issued under NRS 628.190 to 628.310, inclusive, any practice privileges granted pursuant to NRS 628.315 or 628.335, any registration or license granted to a registered public accountant under NRS 628.350, or any registration of a partnership, corporation, limited‐liability company, sole proprietorship or office, or may revoke, suspend or refuse to renew any permit issued under NRS 628.380, or may publicly censure the holder of any permit, license or registration or any natural person granted practice privileges pursuant to NRS 628.315, for any one or any combination of the following causes:  (a)  Fraud or deceit in obtaining a certificate as a certified public accountant, or in obtaining registration or a license as a public accountant under this chapter or in obtaining a permit to practice public accounting under this chapter.  (b)  Dishonesty, fraud or gross negligence by a certified or registered public accountant or a natural person granted practice privileges pursuant to NRS 628.315.  (c)  Violation of any of the provisions of this chapter.  (d) Violation of a regulation or rule of professional conduct adopted by the Board under the authority granted by this chapter.  (e)  Conviction of a felony relating to the practice of public accounting under the laws of any state or jurisdiction.  (f)  Conviction of any crime:  (1)  An element of which is dishonesty or fraud; or (2)  Involving moral turpitude, Ê under the laws of any state or jurisdiction.  (g)  Cancellation, revocation, suspension, placing on probation or refusal to renew authority to practice as a certified public accountant or a registered public accountant by any other state, for any cause other than failure to pay an annual registration fee or to comply with requirements for continuing education or review of his or her practice in the other state.  (h)  Suspension, revocation or placing on probation of the right to practice before any state or federal agency.  (i)  Unless the person has been placed on inactive or retired status, failure to obtain an annual permit under NRS 628.380, within:  (1)  Sixty days after the expiration date of the permit to practice last obtained or renewed by the holder of a certificate or registrant; or (2)  Sixty days after the date upon which the holder of a certificate or registrant was granted the certificate or registration, if no permit was ever issued to the person, unless the failure has been excused by the Board.  (j)  Conduct discreditable to the profession of public accounting or which reflects adversely upon the fitness of the person to engage in the practice of public accounting.  (k)  Making a false or misleading statement in support of an application for a certificate, registration or permit of another person.  (l)  Committing an act in another state or jurisdiction which would be subject to discipline in that state.  2.  After giving notice and conducting a hearing, the Board may deny an application to take the examination prescribed by the Board pursuant to NRS 628.190, deny a person admission to such an examination, invalidate a grade received for such an examination or deny an application for a certificate issued pursuant to NRS 628.190 to 628.310, inclusive, to a person who has:  (a) Made 

Page 23 of 36    NASBA ED & Board Staff Conference – March 2014  

any false or fraudulent statement, or any misleading statement or omission relating to a material fact in an application:  (1)  To take the examination prescribed by the Board pursuant to NRS 628.190; or (2)  For a certificate issued pursuant to NRS 628.190 to 628.310, inclusive; (b)  Cheated on an examination prescribed by the Board pursuant to NRS 628.190 or any such examination taken in another state or jurisdiction of the United States; (c)  Aided, abetted or conspired with any person in a violation of the provisions of paragraph (a) or (b); or (d) Committed any combination of the acts set forth in paragraphs (a), (b) and (c).  3.  In addition to other penalties prescribed by this section, the Board may impose a civil penalty of not more than $5,000 for each violation of this section.  4.  The Board shall not privately censure the holder of any permit, license, certificate or registration or any natural person granted practice privileges pursuant to NRS 628.315.  5.  An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.  NAC.  628.520.  Reporting of certain occurrences to Board. (NRS 628.120, 628.160, 628.386).  A practitioner shall report to the Board, on a form prescribed by the Board, not more than 45 days after:  1. The practitioner receives an adverse peer review or inspection report.  2. The practitioner receives the second of two consecutive modified peer reviews or inspection reports.  3. The decision against the practitioner for the imposition of a disciplinary action, including, without limitation, a censure, a reprimand, a sanction, probation, a civil penalty, a fine, a consent decree or an order for the suspension, revocation or modification of a license, certificate, permit or right to practice by: (a)  The Securities and Exchange Commission; (b)  The Internal Revenue Service; (c)  Any agency of another state authorized to regulate the practice of accountancy in that state for any cause except:  (1)  The failure to pay by the date due a fee for a license, certificate, permit or right to practice; or (2)  The failure to comply with a requirement for continuing education; (d)  Any other federal or state agency for conduct of the practitioner relating to the provision of professional services; or (e)  Any agency of this State, another state or territory, or any agency of the Federal Government authorized to regulate taxes, insurance or securities.  4. Except as otherwise provided in this subsection, any award or judgment of $150,000 or more against the practitioner for a claim of or action for gross negligence, violation of a specific standard of practice, fraud or misappropriation of money in the practice of accounting. If the practitioner is a firm of certified public accountants, the practitioner shall notify the Board, pursuant to this subsection, only of an award or judgment involving the practice of public accounting in this State.  5.  The practitioner is charged with, is convicted of or pleads nolo contendere to, or has an order of deferred prosecution entered in a case involving the practitioner for:  (a)  A felony under the laws of any state or of the United States; or (b)  A crime, an element of which is dishonesty or fraud, under the laws of any state or of the United States. 

 New Hampshire  Code of Administrative Rules.  CERTIFICATION, REGISTRATION, AND PERMIT REQUIREMENTS.  AC 302.05.  Character.  (a) “Dishonest act,” means any course of conduct involving intentional deception by the applicant, whether in the course of employment or as private conduct, and includes violation of any professional code of ethics or conduct to which the applicant is 

Page 24 of 36    NASBA ED & Board Staff Conference – March 2014  

required to adhere provided such actual violation relates to dishonesty.  (b) “Good character” means “good character” as defined in RSA 309‐B:5, II, namely, “the lack of a history of dishonest or felonious acts.”  (c) “History” means:  (1) Conviction at any time of a felony that has not been annulled by a court of competent jurisdiction; (2) Conviction within the year immediately preceding the application of any offense or misdemeanor involving a dishonest act that has not been annulled by a court of competent jurisdiction; (3) Conviction within the 5 years immediately preceding the application of 2 offenses, misdemeanors, or both, involving dishonest acts and that have not been annulled by a court of competent jurisdiction; or (4) Conviction within the 10 years immediately preceding the application of 3 or more offenses, misdemeanors, or both, involving dishonest acts.  (d) The board shall deny an application for a certificate if the board finds by clear and convincing evidence that the applicant is not of good character.  (e) When an applicant is found to be unqualified for a certificate because of a lack of good character, the board shall furnish the applicant:  (1) A statement containing the findings of the board; (2) A complete record of the evidence upon which the determination was based; and (3) A notice of the applicant’s right of appeal under Ac 200.  AC 401.04.  Renewal Forms.  (a) A licensee shall submit, by June 30 of a renewal year, the following on or with a Certification/Registration Renewal Application, Form NHBOA‐8: (1) The applicant’s certificate number as issued by the board upon initial certification; (2) The name of applicant, including any previous names under which the applicant held certification or registration; (3) The applicant’s complete mailing address; (4) The applicant’s complete business address; (5) A statement as to whether, since the original issuance of the certificate or the last renewal, which ever is later, the applicant’s practice privileges before any governmental agency or tribunal in any jurisdiction was in any way sanctioned or altered, and if so, a complete explanation of all material facts; (6) A statement as to whether, since the original issuance of the certificate or the last renewal, which ever is later, the applicant was convicted of a felony or any offense involving dishonesty that has not been annulled by a court of competent jurisdiction, and if so, a complete explanation of all material facts; (7) A statement as to whether, since the original issuance of the certificate or the last renewal, which ever is later, the applicant has had a license denied, revoked, suspended, or in any way limited or sanctioned by any other state or jurisdiction, and if so, a complete explanation of all material facts; (8) An indication if the applicant is required or volunteers to report CPE; and (9) The applicant’s signature, attesting that the information contained in the application is true and correct to the best of the applicant’s knowledge and belief.  

 New Mexico  New Mexico Statutes.  61‐28B‐8.1.  Fingerprinting; criminal history background checks.  (Repealed effective July 1, 2018.)  A.   All applicants for certification as provided for in the 1999 Public Accountancy Act [61‐28B‐1 NMSA 1978] shall:  (1)   be required to provide fingerprints on two fingerprint cards for submission to the federal bureau of investigation to conduct a national criminal history background check and to the department of public safety to conduct a state criminal history check; (2)   pay the cost of obtaining the fingerprints and criminal history background checks; and (3) have the right to inspect or challenge the validity of the record 

Page 25 of 36    NASBA ED & Board Staff Conference – March 2014  

development by the background check if the applicant is denied certification as established by board rule.  B. Electronic live scans may be used for conducting criminal history background checks.  C.   Criminal history records obtained by the board pursuant to the provisions of this section are confidential.  The board is authorized to use criminal history records obtained from the federal bureau of investigation and the department of public safety to conduct background checks on applicants for certification as provided for in the 1999 Public Accountancy Act.  D. Criminal history records obtained pursuant to the provisions of this section shall not be used for any purpose other than conducting background checks.  Criminal history records obtained pursuant to the provisions of this section and the information contained in those records shall not be released or disclosed to any other person or agency, except pursuant to a court order or with the written consent of the person who is the subject of the records.  E.  A person who releases or discloses criminal history records or information contained in those records in violation of the provisions of this section is guilty of a misdemeanor and shall be sentenced pursuant to the provisions of Section 31‐19‐1 NMSA 1978.    New Mexico Administrative Code.  Title 16.  16.60.3.9.  INITIAL CERTIFICATE/LICENSE REQUIREMENTS:  A.  An applicant for initial certification/licensure shall demonstrate to the board's satisfaction that he:  (1)  is of good moral character and lacks a history of dishonest or felonious acts; (2) meets the education, experience and examination requirements of the board; and (3) passes the American institute of certified public accountants ethics examination with a score of 90 percent or higher.  B.  Moral character requirements:  The board may assess moral character requirements based upon applicant‐provided character references and background checks to determine an applicant's history of dishonest or felonious acts.  The board may request the presence at a board meeting of an applicant for whom it has unanswered questions.  C.  Criminal history background check:  Pursuant to Section 61‐28B‐8.1 of the act, all applicants for initial issuance or reinstatement of a certificate and license in New Mexico shall be required to be fingerprinted to establish positive identification for a state and federal criminal history background check.  (1)  An applicant shall submit two completed fingerprint cards to the board office with the initial application for licensure or the application for licensure reinstatement.  (2)  Blank fingerprint cards shall be obtained from the board office.  (3)  Fingerprints shall be taken:  (a) under the supervision of and certified by a New Mexico state police officer, a county sheriff, or a municipal chief of police; (b) by comparable officers in the applicant’s state of residence if the applicant is not a resident of New Mexico; or (c) at the discretion of the board, by a private agency qualified to take and certify fingerprints.  (4) Completed fingerprint cards shall be submitted to the board office with the prescribed fee.  (5) The board shall not issue a certificate or license until an applicant’s background check has been successfully completed.  New Mexico Administrative Code.  Title 16.  16.60.5.11(B).    RULES OF CONDUCT:  In addition to abiding by the AICPA code of professional conduct, New Mexico CPA/RPA certificate/license holders shall abide by the following board rules:  B. Rule 902 ‐ Reportable events.  A licensee shall report in writing to the board the occurrence of any of the following events within 30 days of the date the licensee had knowledge of these events:  (1)  Receipt of a final peer review report indicating “pass with deficiencies” or “fail” or a public company accounting oversight 

Page 26 of 36    NASBA ED & Board Staff Conference – March 2014  

board (PCAOB) firm inspection report containing deficiencies or identifying potential defects in the quality control systems.  For the purposes of Subsection B of 16.60.5.11 NMAC, “deficiency reports” are reports indicating either “pass with deficiencies” or “fail” as defined in the AICPA peer review standards.  (2)  Receipt of a second consecutive deficiency peer review report.  (3) Imposition upon the license of discipline, including, but not limited to, censure, reprimand, sanction, probation, civil penalty, fine, consent decree or order, suspension, revocation, or modification of a license, certificate, permit, or practice rights by:  (a) the securities and exchange commission (SEC), the PCAOB, or the internal revenue service (IRS); or (b) another state board of accountancy for any cause other than failure to pay a professional license fee by the due date or failure to meet the continuing professional education requirements of another state board of accountancy; or (c) any other federal or state agency regarding the licensee’s conduct while rendering professional services; or (d) any foreign authority or credentialing body that regulates the practice of accountancy.  (4) The occurrence of any matter reportable that must be reported by the licensee to the PCAOB pursuant to Sarbanes Oxley Action Section 102(b)(2)(f) and PCAOB Rules and forms adopted pursuant thereto.  (5) Notice of disciplinary charges filed by the SEC, the PCAOB, the IRS, or another state board of accountancy, or a federal or state taxing, insurance or securities regulatory authority, or a foreign authority or credentialing body that regulates the practice of accountancy.  (6) Unless prohibited by the terms of the agreement, any judgment, award or settlement of a civil action or arbitration proceeding of $150,000 or more in which the licensee was a party if the matter included allegations of gross negligence, violation of specific standards of practice, fraud, or misappropriation of funds in the practice of accounting; provided, however, licensed firms shall only notify the board regarding civil judgments, settlements, or arbitration awards directly involving the firm’s practice of public accounting in this state.  (7) Criminal charges, deferred prosecution or conviction or plea of no contest to which the licensee is a defendant if the crime is:  (a) any felony under the laws of the United States or of any state of the United States or any foreign jurisdiction; or (b) a misdemeanor if an essential element of the offense is dishonesty, deceit, or fraud. 

 North Carolina  North Carolina General Statutes.  NCGS 93‐12.  A person is eligible to take the examination given by the Board, or to receive a certificate of qualification to practice as a certified public accountant, if the person is a citizen of the United States, has declared the intention of becoming a citizen, is a resident alien, or is a citizen of a foreign jurisdiction which extends to citizens of this State like or similar privileges to be examined or certified, is 18 years of age or over, and is of good moral character. Administrative Rules.  21 NCAC 08F .0111.  Ineligibility Due To Violation of Accountancy Act. (a) A person may not be eligible to take the CPA examination or receive the North Carolina certificate of qualification as a CPA if the Board determines that the person has engaged in conduct that would constitute a violation of G.S. 93 or the Rules of Professional Ethics and Conduct.  Administrative Rules.  21 NCAC 08N .0204.  Discipline by Federal and State Authorities. 

Page 27 of 36    NASBA ED & Board Staff Conference – March 2014  

(a) Violations of Other Authorities’ Laws or Rules. A CPA shall not act in a way that would cause said CPA to be disciplined by federal or state agencies or boards for violations of laws or rules on ethics. CPAs who engage in activities regulated by other federal or state authorities (including but not limited to the following agencies: IRS, Department of Revenue, SEC, State Bar, North Carolina Secretary of State, PCAOB, NASD, Department of Insurance, GAO, HUD, State Auditor, State Treasurer, or Local Government Commission) must comply with all such authorities’ ethics laws and rules.  (b) Prima Facie Evidence. A conviction or final finding of unethical conduct by a competent authority is prima facie evidence of a violation of this Rule. (c) Notice to the Board Required. A CPA shall notify the Board in writing within 30 days of any conviction or finding against him or her of unlawful conduct by any federal or state court or regulatory authority.    Administrative Rules.  21 NCAC 08N .0208.  Reporting Convictions, Judgments, and Disciplinary Actions.  (a) Criminal Actions. A CPA shall notify the Board within 30 days of any conviction or finding of guilt of, pleading of nolo contendere, or receiving a prayer for judgment continued to any criminal offense.  (b) Civil Actions. A CPA shall notify the Board within 30 days of the following:  (1) any judgment or settlement in a civil suit, bankruptcy action, administrative proceeding, or binding arbitration; (2) which is grounded upon an allegation of professional negligence, gross negligence, dishonesty, fraud, misrepresentation, incompetence, or violation of any federal or state tax law; and (3) that was brought against either the CPA or a North Carolina office of a CPA firm of which the CPA was a managing partner.  (c) Settlements.  A CPA shall notify the Board within 30 days of any settlement in lieu of a civil suit or criminal charge which is grounded upon an allegation of professional negligence; gross negligence; dishonesty; fraud; misrepresentation; incompetence; or violation of any federal, state, or local law. Notification is required regardless of any confidentiality clause in the settlement.  (d) Investigations.  A CPA shall notify the Board within 30 days of any inquiry or investigation by the Internal Revenue Service (IRS) or any state department of revenue criminal investigation divisions pertaining to any personal or business tax matters.  (e) Liens.  A CPA shall notify the Board within 30 days of the filing of any liens by the Internal Revenue Service (IRS) or any state department of revenue regarding the failure to pay, or apparent failure to pay, for any amounts due any tax matters. 

 North Dakota  N.D. Century Code.  43‐02.2‐04.  Certified public accountants.  1. The board shall grant the certificate of "certified public accountant" to any person of good moral character who meets the requirements of this section.  2. For the purposes of this chapter, good moral character means the lack of a history of dishonest or felonious acts. The board may refuse to grant a certificate on the grounds of failure to satisfy this requirement only if there is a substantial connection between the lack of good moral character of the applicant and the professional responsibilities of a licensee and if the finding by the board of lack of good moral character is supported by clear and convincing evidence. When an applicant is found to be unqualified for a certificate because of a lack of good moral character, the board shall furnish the applicant a 

Page 28 of 36    NASBA ED & Board Staff Conference – March 2014  

statement containing the findings of the board, a complete record of the evidence upon which the determination was based, and a notice of the applicant's right of appeal.  

 Oklahoma  Oklahoma Administrative Code.  Title 59.  Section 10:15.8.  Application to take examination – Format – Fees – Qualifications.  A. A qualification applicant to qualify as a candidate for examination shall file an application for qualification in a format approved by the Oklahoma Accountancy Board. The fee for the qualification application shall be determined by the Board and shall not exceed Three Hundred Dollars ($300.00). Every qualification applicant to qualify as a candidate for the certificate of certified public accountant or license of public accountant must be of good moral character, shall submit to a national criminal history record search, must be a resident of this state immediately prior to making application and, except as otherwise provided in this section, shall meet the education and experience requirements provided in this section. The costs associated with the national criminal history records search shall be paid by the applicant.    Section 15.9. Issuance of certificates or licenses.  A. Upon payment of appropriate fees, the Oklahoma Accountancy Board shall grant a certificate or license to any individual of good character who meets the applicable education, experience and testing requirements provided for in this section and in Sections 15.8 and 15.10 of this title. For purposes of this subsection, good character means an individual who does not have a history of dishonest acts as demonstrated by documented evidence and has not been convicted, pled guilty, or pled nolo contendere to a felony charge. The Board may refuse to grant a certificate or license to an applicant for failure to satisfy the requirement of good character. The Board shall provide to the denied applicant written notification specifying grounds for denial of a certificate or license including failure to meet the good character criterion. Appeal of the action of the Board may be made in accordance with the provisions of the Administrative Procedures Act.  G. Every applicant for the certificate of certified public accountant or license of public accountant shall submit to a national criminal history record check. The costs associated with the national criminal history record check shall be paid by the applicant. 

 Oregon  Oregon Revised Statutes.  673.170(2)(g)(h)(i)(j)(k).  Disciplinary actions; grounds; investigations; costs.  (2) The board may take any of the actions described in subsection (1) of this section for any one or any combination of the following causes:  (g) Conduct resulting in a conviction of a felony under the laws of any state, of any foreign jurisdiction or of the United States. However, such conduct may be considered only to the extent permissible under the provisions of ORS 670.280.  (h) Conviction of any crime, an essential element of which is dishonesty, fraud or misrepresentation, under the laws of any state, of any foreign jurisdiction or of the United States.  (i) Conviction of willful failure to pay any tax, file any tax return, keep records or supply information required under the tax laws of any state, of any foreign jurisdiction or of the United States, or conviction of the willful making, rendering, delivery, disclosure, signing or verifying of 

Page 29 of 36    NASBA ED & Board Staff Conference – March 2014  

any false or fraudulent list, return, account, statement or other document, or of supplying any false or fraudulent information, required under the tax laws of any state, of any foreign jurisdiction or of the United States.  (j) Cancellation, revocation or suspension of, or refusal to renew, authority to practice as a certified public accountant or a public accountant in any state or foreign jurisdiction.  (k) Cancellation, suspension, revocation or refusal to renew by any state, any foreign jurisdiction or any federal agency of the right to practice law, to practice as an enrolled agent before the Internal Revenue Service pursuant to 31 C.F.R. part 10, or to practice under other regulatory law if the cancellation, suspension, revocation or refusal to renew was related to the practice of public accountancy or if dishonesty, fraud or deception was involved.  Oregon Administrative Rules.  801‐010‐0345(3)(a)(F).  Registration of Business Organizations (3) Application requirements. (a) Firms located in Oregon: Application by a business organization to be registered as a firm to practice as Certified Public Accountant(s) or Public Accountant(s) must be made to the Board in writing on a form provided by the Board and shall be accompanied by the appropriate fee, stated in OAR 801‐010‐0010. The application and each renewal application must provide the following information in writing:  (F) Notice of any criminal action filed against the business organization or against any owner or manager and notice of any conviction against any owner or manager of the business organization. Notice of a conviction under this rule includes the initial plea, verdict or finding of guilt, pleas of no contest or pronouncement of sentence by a trial court even though that conviction may not be final and sentence may not be actually imposed until appeals are exhausted. The notice provided shall be signed by the person to whom the conviction or criminal action applies, and shall state the facts that constitute the reportable event and identify the event by the name of the agency or court, the title of the matter, the docket number and the date of occurrence of the event.   Oregon Administrative Rules.  801‐030‐0020(7)(b)(A).  Board communications and investigations.  (b) Licensees who receive any Board communication requesting the licensee to provide a written response shall:  (A) Provide a written response to the Board within 21 days of the date the Board communication was mailed. 

 Pennsylvania  CPA Law.  Section 3(a)(11).  To promulgate and amend rules of professional conduct, uniformly applicable to certified public accountants and public accountants, appropriate to establish and maintain a high standard of integrity, objectivity and dignity by certified public accountants, public accountants and firms. Section 4.2.  Requirements for Issuance of Certificate.  (b).  Before an individual may take the examination, the board shall be satisfied that the individual:  (2) is of good moral character. Section 9.1.  Grounds for Discipline.  (a) In accordance with the procedure provided in section 9 of this act, the board may revoke, suspend, limit or otherwise restrict the certificate of a certified public accountant or the registration of a public accountant, may revoke, suspend, limit or otherwise restrict any license issued under this act, may censure or publicly reprimand the holder of any certificate, registration or license, may require completion of general or a specific number of continuing professional education courses or may require more frequent 

Page 30 of 36    NASBA ED & Board Staff Conference – March 2014  

peer review or other remedial action, or may revoke, suspend or limit the right of an individual to practice under section 5.2 of this act or censure or publicly reprimand an individual practicing under section 5.2 of this act for any one or any combination of the following causes: (1) Fraud or deceit in obtaining:  (i) a certificate of certified public accountant; (ii) registration under this act; (iii) a license to practice under this act; or (iv) a determination that substantial equivalency exists with respect to an individual.  (2) Dishonesty, fraud or gross negligence in the provision of professional services.  (3) Violation of any of the provisions of section 12 of this act. (4) Violation of a rule of professional conduct promulgated by the board under the authority granted by this act.  (5) Pleading guilty to, entering a plea of nolo contendere to or being found guilty of a felony under any Federal or State law or the laws of any foreign jurisdiction.  (6) Pleading guilty to, entering a plea of nolo contendere to or being found guilty of any crime, an element of which is dishonesty or fraud under any Federal or State law or the laws of any foreign jurisdiction.  (6.1) Pleading guilty to, entering a plea of nolo contendere to or being found guilty of violating any Federal or State revenue law or the revenue laws of any foreign jurisdiction.  (7) Cancellation, revocation, suspension or refusal to renew authority to provide professional services as a certified public accountant or public accountant by any other state or foreign jurisdiction for any cause other than failure to pay a registration or other fee in such other state or foreign jurisdiction.  (8) Suspension or revocation of the right to practice before any Federal or State governmental agency.  (10) Failure of certified public accountant or public accountant filing an application for a license or renewal thereof to furnish evidence of completion of the requirements for continuing education under section 8.2 of this act or to meet any conditions with respect to continuing education that the board may have ordered in respect to such certified public accountant or public accountant under that section.  (12) Failure of a firm or sole proprietorship to satisfy the peer review requirements in section 8.9 of this act. (13) Failure of a firm to satisfy any of the organizational requirements in section 8.8(d) of this act.  (14) Conduct that brings the profession of public accounting into disrepute or that lowers public esteem for the profession.  (15) Violation of an order of the board.  (16) Engaging in unprofessional conduct. Discipline may be imposed under this clause whether or not actual injury or loss to a client is established.  (17) An act or omission by a licensee in another jurisdiction under substantial equivalency that subjects the licensee to discipline in the other jurisdiction.  (c) For the purposes of this section only, “unprofessional conduct” means: (1) undertaking to perform professional services that the certified public accountant, public accountant or firm cannot reasonably expect to complete with professional competence; (2) failure to exercise due professional care in the performance of professional services; (3) failure to adequately plan and supervise the performance of professional services; (4) failure to obtain sufficient data to afford a reasonable basis for conclusions or recommendations in relation to any professional services performed; or (5) failure to comply with any standard promulgated by any recognized public or private standard‐setting body that is applicable to the professional service being performed. 

 South Dakota  South Dakota Codified Law.  Chapter 36‐20B‐29.   Information to be provided concerning status of certificate or permit in another state‐‐Personal and criminal information. An applicant for 

Page 31 of 36    NASBA ED & Board Staff Conference – March 2014  

initial issuance or renewal of a certificate under this chapter shall in the application, list any state in which the applicant has applied for or holds a certificate, license, or permit and list any past denial, revocation, or suspension of a certificate, license, or permit. Each holder of or applicant for a certificate under this chapter shall notify the board in writing, within thirty days after its occurrence, of any issuance, denial, revocation, or suspension of a certificate, license, or permit by another state, change of address or employment, or any conviction of a felony. 

 Tennessee  Tennessee Code Annotated.  Section 62‐1‐106(a)(b).  Requirements for certification as certified public accountant.  (a) The certificate of certified public accountant shall be granted to persons of good moral character who meet the education, experience and examination requirements of subsections (b)‐(g) and who make application for the certificate pursuant to § 62‐1‐107. (b) "Good moral character" for purposes of this section means lack of a history of dishonest or felonious acts.  Tennessee Code Annotated.  Section 62‐1‐107(f).  Certificates ‐‐ Issuance and renewal ‐‐ Fees ‐‐ Certification of accountants certified in other states ‐‐ Certification of holders of equivalent foreign designations.  (f) Applicants for initial issuance or renewal of certificates under this section shall in their applications list all states in which they have applied for or hold licenses and list any past denial, revocation or suspension of a license; and each holder of or applicant for a certificate under this section shall notify the board in writing, within thirty (30) days after its occurrence, of any issuance, denial, revocation or suspension of a license by another state, change of address or employment or any conviction by a court of competent jurisdiction of a felony. 

 Texas  Chapter 901, Section 253.  Character Investigation.  (a) The board shall ensure that an applicant to take the uniform CPA examination or to receive a certificate is of good moral character as demonstrated by a lack of history of dishonest or felonious acts.  (b) The board by rule may adopt a system to investigate an applicant’s background.  (c) The board may obtain criminal history record information maintained by a law enforcement agency, including the Department of Public Safety and the Federal Bureau of Investigation identification division, to investigate the qualifications of an individual who applies to take the uniform CPA examination or to be certified or issued a firm license under this chapter.  (d) The board may require the applicant to submit a complete set of fingerprints.  If an applicant does not provide a complete set of fingerprints on request of the board, the board may:  (1) deny the applicant’s application to take the uniform CPA examination; or (2) refuse to issue a certificate to the applicant.    Texas Administrative Code, Chapter 525.  Criminal Background Investigations.  Rule 525.1.  (a) The board may deny an applicant's application to take the UCPAE for a period not to exceed five years from the date of application, and shall not issue the CPA certificate, or issue an initial license, or renew a license, and shall revoke a current license, if the board finds that the 

Page 32 of 36    NASBA ED & Board Staff Conference – March 2014  

applicant or licensee has been convicted of a felony offense or upon revocation of applicant's or licensee's felony probation, parole, or mandatory supervision.  (b) The board may deny an applicant's application to take the UCPAE, the application to issue the CPA certificate, or the application to issue an initial license, if the board finds that the applicant has been convicted of a felony or misdemeanor offense which directly relates to the practice of public accountancy. In determining whether the felony or misdemeanor conviction directly relates to such duties and responsibilities, the board shall consider:  (1) the nature and seriousness of the crime; (2) the relationship of the crime to the board's statutory responsibility to ensure that persons professing to practice public accountancy maintain high standards of competence and integrity in light of the reliance of the public on professional accounting services; (3) the extent to which a license to practice public accountancy might offer an opportunity to engage in further criminal activity of the same type as that in which the person was previously involved; (4) the relationship of the crime to the ability, capacity, or fitness required to perform the duties and discharge the responsibilities of a CPA or public accountant; (5) fraud or dishonesty as an element of the offense; and (6) all conduct indicating a lack of fitness to serve the public as a professional accountant. (c) In addition to the factors stated in subsection (b) of this section, the board shall consider §53.023 (Texas Occupations Code) in determining the present fitness of an applicant who has been convicted of a crime. (d) Because an accountant is often placed in a position of trust with respect to client funds, and the public in general relies on professional accounting services, the Texas State Board of Public Accountancy considers that the following crimes directly relate to the practice of public accountancy: (1) any felony or misdemeanor of which fraud or deceit is an essential element; (2) any felony or misdemeanor conviction which results in the suspension or revocation of the right to practice before any state or federal agency for a cause which in the opinion of the board warrants its action; and (3) any crime involving moral turpitude. (e) The following procedures shall apply in the processing of an application to take the UCPAE.  (1) The applicant will be asked to respond, under penalty of perjury, to the question if he or she has ever been convicted of a felony or misdemeanor.  (2) The board may submit identifying information to the Texas Department of Public Safety and or other appropriate agencies on board letterhead requesting conviction records on all applicants about whom the executive director finds evidence to warrant a record search.  (3) The board will review the conviction records of applicants and will approve or disapprove applications as the evidence warrants. If the requested information is not provided by the Texas Department of Public Safety and or other appropriate agencies at least 10 days prior to the examination, an applicant may be permitted to take the UCPAE, with his or her scores subject to being voided. An applicant may have his or her scores voided or may be denied the opportunity to take the UCPAE on the basis of a prior conviction pursuant to a hearing as provided for in the Act.  (4) The examination eligibility fee of an applicant whose application to take the UCPAE has been denied under this section or §511.70 of this title (relating to Grounds for Disciplinary Action of Applicants) and who has not taken any portion of the examination shall be refunded.  (f) An applicant who has not been permitted to sit for the UCPAE as a result of having been convicted of a felony offense must provide evidence of rehabilitation as the board may request.  (g) The following procedure shall apply in the processing of an application for issuance of the CPA certificate.  (1) The applicant shall be asked to respond, under penalty of perjury, to the question if he or she has ever been convicted of a felony or misdemeanor. (2) The board may 

Page 33 of 36    NASBA ED & Board Staff Conference – March 2014  

submit identifying information to the Texas Department of Public Safety and or other appropriate agencies on board letterhead requesting conviction records on an applicant requesting issuance of the CPA certificate.  (3) The board shall review the individual applications and the conviction records of applicants and shall approve or disapprove applications as the evidence warrants. No CPA certificate or initial license may be issued to an applicant whose application for a CPA certificate has been denied. The board may disqualify a person from receiving a CPA certificate or initial license on the basis of a prior conviction pursuant to a hearing as provided for in the Act.  Rule 525.2.  Application for or Renewal of a License for Applicants or Licensees with Criminal Backgrounds.  (a) The following procedure shall apply when renewing a license annually.  (1) Each licensee shall be asked to respond, under penalty of perjury, to the question if he or she has ever been convicted of a felony or misdemeanor of which the board has not previously been informed. If the licensee responds in the negative and pays the required license fee, a renewal license shall be issued in accordance with established procedures. If the licensee responds affirmatively and pays the required license fee, the board may submit identifying information on board letterhead to the Texas Department of Public Safety and other appropriate agencies requesting conviction records on the licensee.  (2) The board shall review the conviction records and either approve or deny the application for a renewal license as the evidence warrants. The board shall refund any renewal fee submitted if the application is denied. The board may suspend or revoke or refuse to renew an annual license on the basis of a prior conviction pursuant to a hearing as provided for in the Act.  (b) The board may suspend or revoke or decline to renew a licensee's valid license as a result of a licensee's prior conviction of a crime relevant to the license and/or certificate following the opportunity for a hearing as provided for in the Act. The board may deny an applicant a license or certificate or the opportunity to sit for the UCPAE or void the applicant's grades as a result of an applicant's prior conviction of a crime relevant to the license and/or certificate pursuant to the opportunity for a hearing as provided for in the Act. Following such an action, the board shall notify the person in writing:  (1) of the reasons for the suspension, revocation, denial, or disqualification; (2) that the applicant or licensee, after exhausting administrative appeals, may file an action in district court in Travis County, for review of the evidence presented to the board and its decision in accordance with the Act; (3) that an applicant or licensee shall begin the judicial review within 30 days after the board's decision is final and appealable; and (4) that the earliest date an applicant or licensee may appeal is when a motion for rehearing is denied, or when the time for filing a motion for rehearing has expired and no motion has been filed. 

 Washington  Revised Code of Washington (RCW).  Title 10.  Section 10.97.030.  Definitions. For purposes of this chapter, the definitions of terms in this section shall apply.  (1) "Criminal history record information" means information contained in records collected by criminal justice agencies, other than courts, on individuals, consisting of identifiable descriptions and notations of arrests, detentions, indictments, informations, or other formal criminal charges, and any disposition arising therefrom, including acquittals by reason of insanity, dismissals based on lack of 

Page 34 of 36    NASBA ED & Board Staff Conference – March 2014  

competency, sentences, correctional supervision, and release.  The term includes information contained in records maintained by or obtained from criminal justice agencies, other than courts, which records provide individual identification of a person together with any portion of the individual's record of involvement in the criminal justice system as an alleged or convicted offender, except:  (a) Posters, announcements, or lists for identifying or apprehending fugitives or wanted persons; (b) Original records of entry maintained by criminal justice agencies to the extent that such records are compiled and maintained chronologically and are accessible only on a chronological basis; (c) Court indices and records of public judicial proceedings, court decisions, and opinions, and information disclosed during public judicial proceedings; (d) Records of traffic violations which are not punishable by a maximum term of imprisonment of more than ninety days; (e) Records of any traffic offenses as maintained by the department of licensing for the purpose of regulating the issuance, suspension, revocation, or renewal of drivers' or other operators' licenses and pursuant to RCW 46.52.130; (f) Records of any aviation violations or offenses as maintained by the department of transportation for the purpose of regulating pilots or other aviation operators, and pursuant to RCW 47.68.330; (g) Announcements of executive clemency; (h) Intelligence, analytical, or investigative reports and files.  (2) "Nonconviction data" consists of all criminal history record information relating to an incident which has not led to a conviction or other disposition adverse to the subject, and for which proceedings are no longer actively pending. There shall be a rebuttable presumption that proceedings are no longer actively pending if more than one year has elapsed since arrest, citation, charge, or service of warrant and no disposition has been entered.  (3) "Conviction record" means criminal history record information relating to an incident which has led to a conviction or other disposition adverse to the subject.  (4) "Conviction or other disposition adverse to the subject" means any disposition of charges other than: (a) A decision not to prosecute; (b) a dismissal; or (c) acquittal; with the following exceptions, which shall be considered dispositions adverse to the subject: An acquittal due to a finding of not guilty by reason of insanity and a dismissal by reason of incompetency, pursuant to chapter 10.77 RCW; and a dismissal entered after a period of probation, suspension, or deferral of sentence.  (5) "Criminal justice agency" means: (a) A court; or (b) a government agency which performs the administration of criminal justice pursuant to a statute or executive order and which allocates a substantial part of its annual budget to the administration of criminal justice.  (6) "The administration of criminal justice" means performance of any of the following activities: Detection, apprehension, detention, pretrial release, post‐trial release, prosecution, adjudication, correctional supervision, or rehabilitation of accused persons or criminal offenders. The term also includes criminal identification activities and the collection, storage, dissemination of criminal history record information, and the compensation of victims of crime.  (7) "Disposition" means the formal conclusion of a criminal proceeding at whatever stage it occurs in the criminal justice system.  (8) "Dissemination" means disclosing criminal history record information or disclosing the absence of criminal history record information to any person or agency outside the agency possessing the information, subject to the following exceptions:  (a) When criminal justice agencies jointly participate in the maintenance of a single recordkeeping department as an alternative to maintaining separate records, the furnishing of information by that department to personnel of any participating agency is not a dissemination; (b) The furnishing of information by any criminal justice agency to another for the purpose of 

Page 35 of 36    NASBA ED & Board Staff Conference – March 2014  

processing a matter through the criminal justice system, such as a police department providing information to a prosecutor for use in preparing a charge, is not a dissemination; (c) The reporting of an event to a recordkeeping agency for the purpose of maintaining the record is not a dissemination.  RCW.  Title 10.  Section 18.04.105.  Issuance of license — Requirements — Examination — Fees — Certified public accountants' account — Valid certificates previously issued under chapter — Continuing professional education — Inactive certificates.   (1) A license to practice public accounting shall be granted by the board to any person:  (a) Who is of good character. Good character, for purposes of this section, means lack of a history of dishonest or felonious acts. The board may refuse to grant a license on the ground of failure to satisfy this requirement only if there is a substantial connection between the lack of good character of the applicant and the professional and ethical responsibilities of a licensee and if the finding by the board of lack of good character is supported by a preponderance of evidence. When an applicant is found to be unqualified for a license because of a lack of good character, the board shall furnish the applicant a statement containing the findings of the board and a notice of the applicant's right of appeal;   RCW.  Title 10.  Section 18.04.215(1)(a).  Licenses — Issuance — Renewal and reinstatement — Continuing professional education — Fees — Notification of sanction/suspension/revocation of license.  (1) Three‐year licenses shall be issued by the board:  (a) To persons meeting the requirements of RCW 18.04.105(1), 18.04.180, or 18.04.183.  RCW.  Title 10.  Section 18.04.370.  Penalty.  (1) Any person who violates any provision of this chapter shall be guilty of a crime, as follows:  (a) Any person who violates any provision of this chapter is guilty of a misdemeanor, and upon conviction thereof, shall be subject to a fine of not more than thirty thousand dollars, or to imprisonment for not more than six months, or to both such fine and imprisonment.  (b) Notwithstanding (a) of this subsection, any person who uses a professional title intended to deceive the public, in violation of RCW 18.04.345, having previously entered into a stipulated agreement and order of assurance with the board, is guilty of a class C felony, and upon conviction thereof, is subject to a fine of not more than thirty thousand dollars, or to imprisonment for not more than two years, or to both such fine and imprisonment.  (c) Notwithstanding (a) of this subsection, any person whose license or certificate was suspended or revoked by the board and who uses the CPA professional title intending to deceive the public, in violation of RCW 18.04.345, having previously entered into a stipulated agreement and order of assurance with the board, is guilty of a class C felony, and upon conviction thereof, is subject to a fine of not more than thirty thousand dollars, or to imprisonment for not more than two years, or to both fine and imprisonment.  (2) With the exception of first time violations of RCW 18.04.345, subject to subsection (3) of this section whenever the board has reason to believe that any person is violating the provisions of this chapter it shall certify the facts to the prosecuting attorney of the county in which such person resides or may be apprehended and the prosecuting attorney shall cause appropriate proceedings to be brought against such person.  (3) The board may elect to enter into a stipulated agreement and orders of assurance with persons in violation of RCW 18.04.345 who 

Page 36 of 36    NASBA ED & Board Staff Conference – March 2014  

have not previously been found to have violated the provisions of this chapter. The board may order full restitution to injured parties as a condition of a stipulated agreement and order of assurance.  (4) Nothing herein contained shall be held to in any way affect the power of the courts to grant injunctive or other relief as above provided. 

 Wyoming  Chapter 2.  Section 1(f).  Applications for Examination.  The Board reserves the right to deny the application or invalidate scores of any individual for any of the following reasons:  (i) failure to furnish all information required under this chapter; (ii) conviction of a felony under the laws of Wyoming or any other state or under the laws of the United States; (iii) conviction of any crime, an element of which is dishonesty or fraud, under the laws of Wyoming or any other state or under the laws of the United States; (iv) falsification of information required by the application process; or (v) a finding of cheating on the CPA examination as set forth in Section 3(e) of this Chapter or as issued by any United States Board of Accountancy.   Chapter 3.  Section 6.  Reporting Convictions, Judgments, and Disciplinary Actions.  Each certificate holder and each CPA firm’s designated certificate holder, on a form and in the manner prescribed by the Board, shall disclose information specified in subsections (d) (e) and (f) of this section. Disclosure shall be required upon initial application for an individual certificate or CPA firm permit. Once licensed, disclosure shall be required within thirty (30) days of the imposition of discipline or judgment or with the renewal of the certificate or permit.  Actions previously reported do not need to be re‐reported upon renewal.  (b) All information or documents disclosed or provided pursuant to the requirements of this section shall be maintained in an investigative file pursuant to Chapter 7, Section 21(c)(ii).  (c) Disclosure shall include but is not limited to the following:  (i) the name of the court or regulatory/ administrative entity involved; (ii) the case number; (iii) the names of the parties involved; (iv) the type of reportable event; and (v) a summary of the reportable events.  (d) Any conviction or finding of guilt, or plea of nolo contendre to:  (i) A felony; (ii) any crime an element of which is dishonesty or fraud; or (iii) the denial, cancellation, revocation, suspension or refusal to renew the authority to practice as a certified public accountant by any state, federal agency, or foreign authority, for any cause other than failure to pay a fee.  (e) Imposition of a censure, reprimand, sanction, probation, civil penalty, fine, consent decree or order, by any state board of accountancy, the Securities Exchange Commission, Public Company Accounting Oversight Board, Internal Revenue Service, or foreign regulatory body that regulates the practice of accountancy.  (f) Any fully adjudicated judgment or settlement in a civil suit or arbitration proceeding entered after July 1, 2005, totaling more than $150,000, and based upon an allegation of dishonesty, fraud, or gross negligence in the practice of accounting, or any action that would constitute a violation of the rules of professional conduct promulgated by the Board.  Notification under this section shall apply only to actions directly involving a certificate or permit holder’s practice of accounting in Wyoming.  

2/28/2014

1

Legislative Update

32nd Annual Conference for Executive Directors and Board

Staff

March 4, 2013

John W. Johnson, DirectorLegislative and 

Governmental Affairs jjohnson@nasba.org(615) 880‐4232 (Office)(615) 934‐6510 (Mobile)

1

BILL IS FILED IN EITHER CHAMBER

FIRST READING OF BILL

STANDING COMMITTEE NO ACTION

REFER TO DIFFERENT COMMITTEE REPORT THE BILL

MAY BE PLACED ON READY LIST

MAY BE PLACED ON AGENDA

DEBATE AND AMENDMENT

DEFEAT BILLPASS BILL DELAY BILL

PROCESS STARTS OVER IN OTHER CHAMBER

TABLED POSTPONE

REFER BACK TO COMMITTEE

IF BILL PASSES IIN A DIFFERENT FORM, SEND TO CHAMBER OF ORIGIN FOR CONCURRENCE

IF BILL PASSES IN IDENTICAL FORM, SEND TO GOVERNOR

IF ORIGINATING CHAMBER CONCURS, SEND TO GOVERNOR

GOVERNOR

VETO BILLSIGN BILL NO ACTION

THE BILL BECOMES A LAW AFTER GOVERNOR SIGNATURE

BILL BECOMES LAW IF GOVERNOR FAILS TO SIGN WITH 10 DAYS EXCEPT WHEN 

LEGISLATURE ADJOURNS

IF VETOED, BILL IS REPASSED IN EACH HOUSE BY A THREE‐FIFTHS VOTE OF ELECTED MEMBERSHIP

2/28/2014

2

2/28/2014

3

Boards of Accountancy Related Legislation  

Text  "State Board of Public Accountancy" 

Include plurals/possessives & past/present tense 

Text  +appointment(CPA, Certified Public Accountant, 

Accountant) w/250 

Include plurals/possessives & past/present tense  

Text  +"home office" Accountant accountancy accounting @0 w/250 

  Include plurals/possessives & past/present tense 

2/28/2014

4

2/28/2014

5

0

10

20

30

40

50

60

70

New Bills Filed

2/28/2014

6

High PriorityContains a change in statutory language having a direct impact on the profession

Contains statutory language that if amended could have an impact

2014 SESSION history | hilite | pdf | print version

14100809DHOUSE BILL NO. 937

Offered January 8, 2014 Pre-filed January 8, 2014

A BILL to amend and reenact §§ 2.2-3701, 2.2-3705.7, 2.2-3711, and 2.2-3713 of the Code of Virginia, relating to the Virginia Freedom of Information Act; applicability to the State Corporation Commission; certain exemption for the

State Corporation Commission; proceedings for enforcement.----------

§ 2.2-3713. Proceedings for enforcement of chapter.

4. In a case involving the State Corporation Commission, to the Supreme Court in accordance with Article IX, Section 4 of the Constitution of Virginia.

2/28/2014

7

§ 2.2-3711. Closed meetings authorized for certain limited purposes.

A. Public bodies may hold closed meetings only for the following purposes:

27. Those portions of disciplinary proceedings by any regulatory board within the Department of Professional and Occupational Regulation, or Department of Health Professions, or the Board of Accountancy conducted pursuant to § 2.2-4019 or 2.2-4020 during which the board deliberates to reach a decision or meetings of health regulatory boards or conference committees of such boards to consider settlement proposals in pending disciplinary actions or modifications to previously issued board orders as requested by either of the parties.

0

2

4

6

8

10

12

14

3‐Jan

4‐Jan

5‐Jan

6‐Jan

7‐Jan

8‐Jan

9‐Jan

10‐Jan

11‐Jan

12‐Jan

13‐Jan

14‐Jan

15‐Jan

16‐Jan

17‐Jan

18‐Jan

19‐Jan

20‐Jan

21‐Jan

22‐Jan

23‐Jan

24‐Jan

25‐Jan

26‐Jan

27‐Jan

28‐Jan

29‐Jan

30‐Jan

31‐Jan

Daily Activity on High Priority Bills

2/28/2014

8

0

20

40

60

80

100

120

140

3‐Jan

4‐Jan

5‐Jan

6‐Jan

7‐Jan

8‐Jan

9‐Jan

10‐Jan

11‐Jan

12‐Jan

13‐Jan

14‐Jan

15‐Jan

16‐Jan

17‐Jan

18‐Jan

19‐Jan

20‐Jan

21‐Jan

22‐Jan

23‐Jan

24‐Jan

25‐Jan

26‐Jan

27‐Jan

28‐Jan

29‐Jan

30‐Jan

31‐Jan

Daily Activity on Bills Tagged

2/28/2014

9

2/28/2014

10

2/28/2014

11

2/28/2014

12

23

2/28/2014

13

26

2/28/2014

14

2/28/2014

15

2/28/2014

16

2/28/2014

17

2/28/2014

18

2/28/2014

19

Questions?

2/26/2014

1

National Registry of CPE Sponsors

andThe Future of Learning:

Exploring New Learning Methods for CPE

Jessica Lutrull, CPA, Maria Caldwell, Esq., and Eric Dingler2014 Executive Director & State Board Staff Conference

Savannah, GAMarch 4, 2014

National Registry of CPE Sponsors

Jessica LuttrullManager, National Registry ‐ NASBA

2/26/2014

2

Topics• Registry Processes and Resources to Benefit State Boards

– Desk Audit Process

– Complaint Process

– Tools on LearningMarket.org

• The State of the National Registry

• The CPE Standards

Desk Audit Process

Audit Purpose:

Confirm responses on the self‐certification renewal application regarding compliance with the CPE Standards

2/26/2014

3

Desk Audit Process

• Sponsors are selected at random

• Sponsors receive notice of audit electronically

Desk Audit Process – What is Reviewed?

• Promotional Materials

• Instructor/Course Developer Biographies

• Certificate of Completion

• Evaluation Form

• Attendance Monitoring Procedures

• Program Materials

• For group internet based and self‐study delivery methods, selected programs are reviewed for content and technical accuracy

2/26/2014

4

Desk Audit Results

• Audit Failed – Corrective Action Plan Required

• Audit Passed – Deficiencies Noted

• Audit Passed – No Findings

Desk Audit Results

Communication Consists of:

• Report Opinion– Program reviewed for audit

– Audit period

– Audit outcome

• Report of Desk Audit Findings– Findings

– Corrective actions

2/26/2014

5

Complaint Process

How does the Registry accept complaints?

• Submitted electronically through a form on LearningMarket.org• Registry Forms and Applications page• Contact Us

What information do I need to complete the form?

• Basic contact information of complainant• Name of course provider• Registry identification number of the sponsor (if known)• Date of Occurrence• Description of complaint and supporting documentation  

Complaint Process

• Once the form is submitted, the data feeds into our system

• System alerts the auditor that there is a new complaint

• Auditor reviews complaint and begins investigative process

• Sponsor is always notified of complaint however the complainant always remains anonymous

• Complainant and sponsor receive communication regarding the status and resolution of complaint

2/26/2014

6

Complaint Outcomes

• If the investigation indicates there are no violations of the Standards or other Registry requirements, the complaint will be closed and all parties will be notified.

• If the investigation indicates that violations have occurred, NASBA notifies the sponsor. The sponsor has 60 days to correct the violations. If the sponsor is unable to make corrections, the sponsor is removed from the Registry program.   

Tools and Resources

Confirm Registry Sponsor Status Tool

Search for CPE Providers 

www.learningmarket.org

• Confirm Registry Sponsor Status Tool

• Search for CPE Providers

2/26/2014

7

The State of the National Registry

2,000Government agencies

Professional publishingcompanies

ACCOUNTING FIRMS

Accounting SOCIETIES

NON‐PROFITS

Private companies

ACADEMIA

National Registry ‐ Trends

Private companies are the growing sector of the Registry.

Recent additions to the National Registry include:

2/26/2014

8

The CPE Standards

The role of the CPE Standards:

• Establishes requirements for the development and administration of CPE programs

• Establishes areas of responsibilities for CPE providers

• Provides uniform CPE language that can be utilized by jurisdictions in their laws and rules

The CPE Standards

• The Standards were last revised in January 2012.

• Procedures were put in place such that the Standards would be reviewed and evaluated every 2 years.

2/26/2014

9

The CPE Standards

2014 – Year of Review and Evaluation

• The process will follow the 2012 revision process:

• The Standards will be reviewed and evaluated by the CPE Standards Working Group

• The Working Group will present its recommendation to NASBA’s CPE Committee which will then present its recommendation to a Joint CPE Standards Committee made up of representatives from the AICPA and NASBA

• The respective Boards will review and approve any recommended revisions from the Joint Committee which will then be available for public comment

The CPE Standards Working Group

• Comprised of 13 members representing the stakeholders in CPE.

• Members have experience in:• development of group live, self study and group internet based courses

• instructional design of courses• development of education for internal use• development of technical courses• higher education  (college/university)• the administration of CPE from a State Society and AICPA perspective

• Includes representation from State Boards as well as NASBA’s board

• Is geographically dispersed

2/26/2014

10

Areas of Consideration in 2014

• Innovations in delivery methods

• Blended delivery methods

• Nano‐Learning

The Future of Learning: Exploring New Learning Methods for CPE

Maria CaldwellChief Legal Officer and Director of Compliance Services – NASBA

Eric DinglerDirector, Audit Chief Learning Officer – Deloitte LLP

2/28/2014

1

The Uniform CPA Examination

Update on Administration of CPA Examination

NASBAExecutive Directors Conference

March 2014Patricia Hartman, Director of Client Services, NASBA

Kimberly Farace, Team Leader, Client Services, PrometricMichael Decker, Director of Examinations, AICPA

The Uniform CPA Examination

Improving the Candidate Experience

►Online services

►NTS Reprint

►Score Reporting

►Extended Customer Service Hours

►Candidate Care

►Candidate Outreach

►International Administration

2/28/2014

2

The Uniform CPA Examination3

► Wholly-owned subsidiary of Educational Testing Service (ETS)

► Computer-based testing industry leader since early 1990’s

► Prometric today . . .

● Approximately 400 clients around the world

● Administers exams in

~ 500 Academic, Professional & Corporate testing locations (High Stakes)

~ 179 countries

26 languages

● ~ 2,200 employees

● Over 10,000 exams delivered daily, >9,000,000 annually

● Full range of test development and psychometrics services

About Prometric

Integrity

Focus on Providing Excellent Service

Collaborative Relationships

Teams Seek and Provide Solutions

A Duty to Seek Inspiration from our Client Partners

The Uniform CPA Examination

Prometric’s Mission, Vision & ValuesPrometric Vision:Use technology and consultation with world-class clients to develop and deliver examinations that reliably and validly assess a candidate’s knowledge, skills and abilities.

Prometric Mission:Constantly improve the technologies, systems, processes and individual tasks that drive better, faster and more cost-effective test development and delivery for our clients and their candidates worldwide.

Prometric Values:Focus on providing candidates a “Best in Class” testing experience.1st Value: Providing a professional environment for honest test takers to take reliable, valid tests.

4

2/28/2014

3

The Uniform CPA Examination

Prometric Test Center Vision

5

Three key elements characterize a Prometric Test Center

Quality

Consistency  Security 

Where high-stakes testing leads to credentialing and professional licensure, it is imperative that Prometric Test Centers meet the measurable requirements that drive clients' confidence and loyalty around the world –

• Quality of operations that are superior to competitors’• Consistent delivery of every testing program to every candidate• Secure management and administration of intellectual property

The Uniform CPA Examination

Test Center Support

6

Test Center 

Technology

Security

Operations

Customer

Candidate Care

Registration Services

Staff TrainingExpertise & Assistance

Monitoring

Secure Site

24/7 MaintenanceSystem Installation

2/28/2014

4

The Uniform CPA Examination

Prometric Test Centers

► 285 test centers are approved to deliver the CPA Exam

► 5,250 seats are available for CPA candidates today – a 31% increase since we began testing 10 years ago

7

The Uniform CPA Examination 8

Global Locations

2/28/2014

5

The Uniform CPA Examination

Test Center Policy & Process► All Prometric Test Center Administrators (TCAs) undergo initial and routine

training to ensure competence

● Standard Operating Procedures – Client & Prometric

● Security Policy & Procedures

● Customer Service Best Practices

► All TCAs must pass a TCA Certification Exam

9

PROMETRIC TCA POINTS OF FOCUS

Point of Focus Key Components Results

Protect the Test

• Confirm candidate identity

• Prohibit restricted items

• Maintain examination security• Maintains examination integrity

• Deters potential fraud

• Ensures a positive and consistent testing environment for each candidate

• Promotes accountability at the test center level

• Reinforces Prometric’s core values and mission

Protect the Environment

• Prepare the testing center

• Actively monitor testing

• Report all anomalies

Be Courteous

• Address each candidate by name

• Provide accurate information

• Maintain professionalism

The Uniform CPA Examination

Test Center Support

10

Test Center 

Technology

Security

Operations

Customer

Candidate Care

Registration Services

Staff TrainingExpertise & Assistance

Monitoring

Secure Site

24/7 MaintenanceSystem Installation

2/28/2014

6

The Uniform CPA Examination

Prometric Scheduling Services

► 1,863,766 hits to CPA page on Prometric.com in 2013

► 95% of CPA Candidates schedule using on-line services

► Google Maps allow for easy search for convenient site locations across state and country borders

► Test Center locations and availability of appointments are easy to find using the Test Center Availability Tool

11

www.prometric.com/cpa

The Uniform CPA Examination

Center Not able to Test (CNATT)► In the event a center is not able to deliver exams, a CNATT

is issued ► Advanced notice CNATTs are issued for relocations and

upgrades► Short notice CNATTs are issued due to extreme weather or

unforeseen technical Issues. Every effort is made to avoid same-day CNATTs

► The Contact Center will send an email and/or vmail to all impacted candidates

► The Contact Center will then cancel the appointments and contact the candidates to reschedule

► CNATTs are listed on the Prometric site status page www.prometric.com/sitestatus

► For weather that impacts a large number of centers the www.prometric.com home page is updated with an announcement

2/28/2014

7

The Uniform CPA Examination

Winter Storms

13

www.prometric.com/sitestatus

Events Impacted by 2014 Snow Storms

Hercules - 467

Ion - 141

Janus - 149

Leon - 32

Nikka - 122

Orion - 19

Pax - 312

Texas Ice - 82

Seneca - 35

The Uniform CPA Examination

Testing Accommodation Enhancements

Prometric is 508 Compliant.

● Self-Scheduling for extra time accommodations. Live

● New Accommodation Codes. Live

● On-line notifications to test center. Live

● Tool Kits at every center. Live

● Enhanced break and extra time capabilities. 2014

● Exploring ways to create reduced distraction testing areas. 2014

14

2/28/2014

8

The Uniform CPA Examination

15

Testing Accommodations – Standard Tool Kit

ItemScreen Magnifier/Anti-Glare Screen

Kensington Expert Trackball Mice

Touch Pad Mouse

Microsoft Ergonomic Keyboard

Left Handed Mouse

Wireless Ergonomic Mouse

Wireless Touch Keyboard

Large Calculator

Timer

USB Adapter Male/Female

The Uniform CPA Examination

Test Center Support

16

Test Center 

Technology

Security

Operations

Customer

Candidate Care

Registration Services

Staff TrainingExpertise & Assistance

Monitoring

Secure Site

24/7 MaintenanceSystem Installation

2/28/2014

9

The Uniform CPA Examination

Consistent Global Check-in Process

During Check-in, all CPA candidates follow the same check-in process…

• Present NTS to the TCA• Present ID to the TCA• Complete the electronic

fingerprint capture process • Take the Digital Image• Sign the Sign-in Log• Demonstrate that pockets are

empty by turning them inside out• Demonstrate that they have no

hidden metal items by being scanned by metal detector wand

• Read and acknowledge the Test Center Regulation Form

The Uniform CPA Examination

Test Center Security Highlights

► DVRs in all centers that deliver the CPA exam● Provide high resolution color video, archived to hard drive of DVR

● Cameras & microphones in Candidate areas

● Video/audio evidence burned to CD instead of VHS tape

● Prometric HQ & Channel Managers have remove viewing capability

► Multiplexers at every proctor station allows for clear visual monitoring of every candidate

2/28/2014

10

The Uniform CPA Examination

Test Center Security Highlights

ID Management Solutions Digital image capture

Biometric check-in including electronic ID

capture and digital fingerprinting

ID Policy and Sign-in Logs.• Required government-issued ID with

picture and signature

• Candidate signs-in and out every time they enter and leave the room

• Passport is required for testing outside of the US and US Territories

The Uniform CPA Examination

Test Center Security Highlights

► Hand-held metal detector wands.

► Pockets-out ● All Candidates must demonstrate that their

pockets are empty by turning them out for TCA to see.

2/28/2014

11

The Uniform CPA Examination

Test Center Support

21

Test Center 

Technology

Security

Operations

Customer

Candidate Care

Registration Services

Staff TrainingExpertise & Assistance

Monitoring

Secure Site

24/7 MaintenanceSystem Installation

The Uniform CPA Examination

CPR Enhancements

► Design of application intended to limit the amount of “free-form text” entered by TCA

► Branching interface – much more detail available

► CPA CPRs will include more structured detail in the text box

► Pilot is complete

► Target Live – March 2014

22

2/28/2014

12

The Uniform CPA Examination

Global Channel UpgradeWhat is the Prometric Channel Upgrade?

► Prometric periodically improves the quality and performance of the testing centers with advances in Operating Systems and software

► Enhances the performance of the servers and testing workstations

► Keeps global infrastructure current with ongoing test delivery/publishing demands

Servers

● Deployment of new, more robust, servers to all test centers. Implementation of Windows Server 2008. Live in all CPA Centers.

23

The Uniform CPA Examination

Global Channel Upgrade (cont.)

Administrator’s Workstations

● Implementation of Windows 7- Live in all CPA Centers.

Testing Workstations

● Hardware upgrade to 3,700 testing workstation - Complete.

● Implementation of Windows 7- Roll-out during 2014.

24

2/28/2014

13

The Uniform CPA Examination

Test Center Support

25

Test Center 

Technology

Security

Operations

Customer

Candidate Care

Registration Services

Staff TrainingExpertise & Assistance

Monitoring

Secure Site

24/7 MaintenanceSystem Installation

The Uniform CPA Examination

Global Operations

Copyright © 2013 26

Regional Support Center

Corporate Headquarters - Baltimore

Regional Headquarters – London & Kuala Lumpur

Minneapolis

Baltimore

Kuala Lumpur

SydneyJohannesburg

Cairo

LelystadManchester

Seoul

Beijing

TokyoNew Delhi

London

Singapore

Paris

Dundalk

2/28/2014

14

The Uniform CPA Examination

Innovations: Testing Operations

The Prometric Operations Center (POC) places the candidate first with a focus on quality of service► Prometric’s new global operations center opened in June 2013

► Cross functional effort to transform the way that we look at testing events end-to-end and help guarantee that we deliver an exceptional testing experience for every test taker, every time

► The new operations organization is simplified to three functions:● Global Testing Infrastructure● Global Candidate Services● Americas Delivery Services

27

The Uniform CPA Examination

Innovations: Testing Operations

► By design, the POC fosters an open, transparent and collaborative culture

► Employees are trained to understand the “Why?”

► Collaboration is encouraged through “teaming areas” for impromptu discussions

► Advanced technology tools provide for improved collaboration, communication and efficiency

28

2/28/2014

15

The Uniform CPA Examination

Innovations: Testing Operations ► The Operations Command Center (OCC) provides for proactive

monitoring of the health of our network as well as support for our TCAs in the field

► The Critical Operations Room (COR) provides a command post for cross functional teams to monitor high priority testing events to ensure success● Mission critical systems are functioning as expected● Additional support is available to support testing operations● Decisions can be made in real time to ensure quality of service

29

The Uniform CPA Examination

Why we need it

Preparing for theMarket Analysis

2/28/2014

16

The Uniform CPA Examination

The Need for a Market Analysis

Changing Accounting Profession:

Impacts Exam and licensure process

Adapting to the Market:

Enables Exam relevance and protection of the public interest

Practice Analysis:

Identifies knowledge and skills needed at entry-level practice

Market Analysis:

Provides information about the profession, the pipeline, and its constituents

The Uniform CPA Examination

Preparing for thePractice Analysis

What we need to find out

2/28/2014

17

The Uniform CPA Examination

Practice AnalysisA research project designed to…

33

Document the scope of entry-level practice

Identify how entry-level practice is changing

Serve as the foundation for the Exam’s validity and legal defensibility

Provide data to define the scope of the CPA Exam

The Uniform CPA Examination

Two Most Important BOE Responsibilities

34

►Determine what will be tested and under what structure (Practice Analysis)

►Define acceptable performance (establishing the passing score)

2/28/2014

18

The Uniform CPA Examination

Practice AnalysisThe CPA Exam Responds to the Needs of the Profession

35

The Uniform CPA Examination

BOE and the Practice Analysis

36

Board of Examiners

Psychometric Oversight Committee

Content Committee

Audit Subcommittee

Financial Accounting

and Reporting Subcommittee

Business Environment and Concepts Subcommittee

Regulation Subcommittee

State Board Committee

BOE Sponsor Group

SponsorAdvisoryGroup

2/28/2014

19

The Uniform CPA Examination

What we know

New Resource for Boards of Accountancy

The Uniform CPA Examination

Event in a Box

Provide boards of accountancy with student-focusedresources for use at educators conferences, state society meetings, etc.

Created with NASBA

Includes:

• Resource PowerPoint

• Complementary talking points

2/28/2014

20

The Uniform CPA Examination

Thank you!

Patricia Hartman

NASBA

Director of Client Services

Phone and Fax:615-880-4273phartman@nasba.org

Kimberly Farace

Prometric

Team Leader, Client Services

Phone: 443-455-6404kimberly.farace@prometric.com

Michael DeckerAICPADirector of Examinations, Examinations Team Phone: 609-671-2906 mdecker@aicpa.org

2/26/2014

1

Oklahoma Accountancy Board

What does NASBA Investigator Training offer that can be used by states? 

• Consistency

• Uniformity

Required Training:

• How

• Compensating Investigators

TRAINING CLAUSE: As a condition of performing investigations for the Board, contractors are required to view the National Association of State Boards of Accountancy’s Investigator Training Series. Upon completing the training series the contractor shall certify in writing they have completed the training series. The Contractor shall receive a one‐time $200 fee upon receipt by the Board of the written certification.

2/26/2014

2

Any new investigator or contractor employed to assist in the investigation of Board enforcement matters, exp.:

• CPAs

• On staff

• Outside contractors

• Board Employees

• Umbrella Agency Investigators

Overview:

• Different types of complaints:

• Administrative

• Performance based

• Sources of information for the investigation

• Penalties available if there is a violation

• Opinions of investigator

2/26/2014

3

Basic steps for a standard investigation

Investigator’s relationship with the Board

Documentation for retaining investigator

Process of submitting reports

• Reviews typical documentation gathered

• Gathering documentation from complaint, respondent and others

• Different types of documentation based upon type of investigation

2/26/2014

4

• Exposure to techniques that investigator may not have been exposed

• When to interview

• Where to interview

• Note taking procedures

• Demeanor

• How to question a witness

• Critical to convey information to Board

• How to communicate results

• Style of report

• Storing documentation

• Following standard protocols

• Tracking pending investigations

• Final reports and follow‐ups

2/26/2014

5

Bad Report

Good Report

Uniform

Consistent

Sporadic 

Unprofessional

• When to consider retaining

• Preparing witness to testify

• General practice pointers for testimony at hearing

2/26/2014

6

http://nasba.org/mc/investigatortrainingseries/

2/25/2014

1

CPE Audit Service

Maria Caldwell, Director of Compliance Services

Tom DeGroodt, Executive Director, MO Board of Accountancy

Rebecca Gebhardt, Manager of Compliance Services

Mission Driven, Member Focused

2/25/2014

2

CPE Audit Service

CPE Audits

Process Improvement for:

Thanks!

CPA

Boards of Accountancy

2/25/2014

3

Board Staff Benefits:

Records submitted by the licensee are saved and stored online, essentially converting CPE Audits to a 

completely paperless process.

The compliance feature allows Board Staff to evaluate the licensee’s compliance with the CPE 

requirements throughout the audit process by comparing credits entered (and passed in the audit) 

against the state’s CPE rules.  

As individual courses and reporting periods are audited, Board Staff can attach documentation 

(letters, emails, etc.) and save notes in the system so that a history of the audit is available for future 

reference in one centralized location.

Other reports in the system allow Board Staff to track and manage the CPE audit workload. 

Licensee Benefits:

Records are submitted and stored online, which reduces the need to store and maintain 

paper records and also provides continuity in the event of a job change or lost records.

Credits are entered using a basic online form and documentation (such as certificates of 

completion) can be attached to each course.

CPE status reports give licensees the ability to track how they are progressing toward the 

completion of their requirements based on records they have entered.

Accounts are available online throughout the submission period for the licensee to access 

and add/edit records until required to submit their records to the Board.

Licensees can download and export the records they have entered into a spreadsheet for 

personal record keeping or choose a printer‐friendly version of their CPE records. 

CPE credits are submitted to the Board at the click of a button.

2/25/2014

4

How Does it Work?

239

204

78

62

State Board Licensee Data

NASBA CPE Audit Service

2/25/2014

5

What does this look like?

• CPAs log in using license number and one other unique identifier. For Missouri, a state‐issued PIN was added to the ALD feed and used as the verifying data element. NASBA can also generate the initial unique passwords.

• Board Staff log in using user name and passwords set up by NASBA staff.

2/25/2014

6

Licensee “My Profile” Page

• The “My Profile” page is the user dashboard.

• All details have been pre‐populated by the data in the ALD feed.

• Users must update records at the Board and when the next ALD feed arrives, the details in their account are automatically updated.

“CPE Credits Reported” Page

• The CPE Credits Reported tab shows a laundry list of all the CPE records that have been added to the CPA’s account.

2/25/2014

7

Add New Credit

• To add new credits to the account, select “Add New Credit” from either the link on the CPE Credits Reported page or from the dropdown menu under Manage CPE Credits.

Select Credit Type

• The “Add New Credit” page shows the steps for entering new credits.

• Users must start by selecting the appropriate type of CPE credit earned.

2/25/2014

8

Enter Credit Details

• The next step is to enter all the pertinent details of the CPE credit earned.

Select Subject Areas and Credit Amounts

• Next, users select the subject areas of CPE credit that were earned for the course. 

• Multiple subject areas can be selected from the dropdown menu and a different value assigned to each.

• The entries stack up on the right side of the screen as subject areas and credit amounts are entered. When finished, click continue.

2/25/2014

9

Browse and Upload Attachment

• The next step is to upload Certificates of Completion or other acceptable documentation showing proof of earned credit. 

• The browse and attach mechanism works like any typical software platform.

Review Summary and Add Credit

• The last step is to review a summary of the course and “Add” it once satisfied all information is correct.

2/25/2014

10

Record Appears with CPE Credits Reported

• Now the added credit appears on the CPE Credits Reported page.

NEW! CPE Status Tab

• We recently added this new CPE Status tab that gives licensees the ability to track how they are progressing toward the completion of their requirements based on records they have entered.

• CPAs can click on the reporting period they would like to review from the choices at the right to generate a PDF report.

2/25/2014

11

NEW! CPE Status Tab

• Page 1 of the PDF report shows how many credits are required, how many have been earned per category and how many still need to be earned.

• The Totals by Subject Area box shows which subject area credits count toward each of the requirements.

NEW! CPE Status Tab

• Page 2 of the PDF report lists the various courses that have been entered for that reporting period and their subject area and credit breakdowns including totals at the bottom.

2/25/2014

12

NEW! CPE Status Tab

• If any credits are not allowed to be counted, a Page 3 will be included in the report that lists those courses and provides an explanation of why the credits are not being counted.

• In this example, this course was included in a previous annual audit and did not pass the audit; therefore, the credits have been deemed by the Board to not qualify toward the CPE requirements.

Help Videos and User Manual

• The Help tab offers CPAs a full user manual document as well as help videos to explain the process for entering new credits. 

2/25/2014

13

Submit to Board

• Once all credits for given reporting cycle have been successfully entered, the CPA can submit the records to the Board.

• The “Submit to Board” feature can be accessed using the tab navigation or the menu option under the Manage CPE Credits tab.

Submit Information to Board

• On the Submit to Board page, the option of having credits evaluated against the state rules where the user has their principal place of business is offered.

• A notice will flag to the user if any records are missing attachments to help avoid omissions.

• Users are also given the opportunity to download and print all their records before submitting.

2/25/2014

14

Board Staff “My Profile” Page

• The “My Profile” page is the main dashboard for Board Staff users.

• An additional admin tab appears for Board Staff Users.

• The Manage Users option allows Board Staff to access the full list of licensee accounts and locate specific CPA records and accounts.

• The Manage Groups option allows Board Staff to narrow to the list of licensees within each audit pool categorized by specific audit month or year depending on each Board’s process.

Locate Licensee Account

• Using the “Manage Users” page, Board Staff can search by different criteria to locate a desired CPA account.

• The “View Details” link should be used to review and evaluate the records contained in the CPA account.

2/25/2014

15

Board Staff View of CPA Account

• When Board Staff are viewing a CPA account, more options now appear that are not seen by the CPAs.

• The Compliance Status tab is where the system’s rule engine automatically calculates the CPA’s CPE compliance per reporting cycle, based on a state’s specific CPE rules.

Compliance Report

• The Compliance Status tab shows the overall audit status of the given reporting cycle. This is manually determined by the CPE auditor.

• Based on the credits submitted by the CPAs, the Requirements Summary box automatically displays credits required, earned and missing overall, by each year and per special requirements subcategories using user defined information.

• The Events tab is where Board Staff should click to evaluate all the credits reported to the Board.

2/25/2014

16

Board Staff View of CPA CPE Records

• Board Staff can click on the individual course numbers to view the details and attachments for each record.

• The “Audited?” column on the far   left provides an at‐a‐glance view for Board Staff of which records have been audited and the audit status of each.

• A green light means “Passed”, a red light means “Failed”, a yellow light means “In Progress”, a blue light means “Board Review” and blank means “Not Audited”.

Board Staff View of CPE Record Detail

• Once inside the record details, Board Staff can review the details entered and check the attached documentation by navigating to the “Attachments” tab.

2/25/2014

17

Board Staff View of CPE Record Details

• Simply click on the download link to open and view the documentation attached by the CPA.

Board Staff View of CPE Record Details

• In many cases, a Certificate of Completion will be included.

• Board Staff can review the information contained in the documentation against the course details entered by the CPA to determine a “Passed” or “Failed” audit status for the credits.

2/25/2014

18

Board Staff View of CPE Record Details

• The audit status of each record can be marked on the Credit Details tab.

Board Staff View of CPE Record Details

• The different status options appear when making a selection for each course record.

2/25/2014

19

Board Staff View of CPA CPE Records

• Credit is now showing as passed with a green light icon

• Once all credits have an audit  status assigned, the overall audit status can be selected

Board Staff View of Reports Menu

• To see aggregated information about the CPE audits, Board Staff have access to reporting options found under the “Reports” tab.

2/25/2014

20

Board Staff View of Report Options

• This screen shows the list of different reports available.

• Reports can be narrowed by specific time frames or by reporting cycles.

Sample Audit Details Report

• This is an example of the results of an Audit Details report. 

• This report lists all CPAs within the selected time frame, their automatic compliance status, overall audit status, number of records or entries per CPA, number of failed records, number of passed records, number of in progress records, number of records requiring Board review, number of records not yet audited and the date the CPA last submitted their records.

2/25/2014

21

Board Staff View of Help Options

• The Help tab offers Board Staff access to all the CPA user Help materials as well as a dedicated Board Staff  user manual document and Board Staff user help videos.

Participating Boards:

Missouri – Launched October 2012. Completed 2 

annual audits.

o Platform is available to all licensees 

optionally, but Board requests those 

selected for audit must submit their records 

via the online platform. 

o Exceptions are granted to licensees upon 

request if they have challenges using the 

platform. 

o For these exceptions, Missouri Board staff 

enter the paper records into the system on 

behalf of the licensees in order to manage 

all CPE audit records in one location and 

take advantage of reporting options.

2/25/2014

22

Participating Boards:

Tennessee – Launched January 2014. First annual 

audit takes place in May 2014. 

o Platform is available to all licensees 

optionally, but Board requests those 

selected for audit must submit their records 

via the online platform. 

o Exceptions are granted to licensees upon 

request if they have challenges using the 

platform. 

o For these exceptions, Tennessee Board staff 

plan to enter the paper records into the 

system on behalf of the licensees in order to 

manage all CPE audit records in one location 

and take advantage of reporting options.

Participating Boards:

Virginia – Launched February 2014. First monthly 

audit takes place in March.

o Platform is available to all licensees optionally, 

but Board requests those selected for audit 

must submit their records via the online 

platform. 

o Exceptions are granted to licensees upon 

request if they have challenges using the 

platform. 

o For these exceptions, Virginia Board staff plan 

to enter the paper records into the system on 

behalf of the licensees in order to manage all 

CPE audit records in one location and take 

advantage of reporting options.

2/25/2014

23

Boards Considering Participation:

Mississippi – Topic on the agenda for the March 21, 2014 Board 

Meeting

o Mississippi is considering making the platform available to 

all licensees and using the platform to replace their annual 

CPE reporting form requirement for all licensees and their 

CPE audit process for those selected in the annual audits. 

o Attachments would not be required for annual CPE 

reporting form, but would be required for annual CPE 

audit.

o Exceptions could be granted to licensees upon request if 

they have challenges using the platform. 

o For those exceptions, Mississippi Board staff plan to enter 

the paper records into the system on behalf of the 

licensees in order to manage all CPE audit records in one 

location and take advantage of reporting options.

Interested in the CPE Audit Service 

for your Board? 

Contact: Rebecca Gebhardt

rgebhardt@nasba.org

2/25/2014

24

2/26/2014

1

NASBA 32nd Annual Conference for Executive Directors and Board StaffMarch 5, 2014

A Case Study in Improving Relationships Between a State Board and a State SocietyPresented by Rick Sweeney and Rich Jones

Situation Inherited in June 2005

Rick was brand new at SB

Relationship between prior SB ED and prior SS CEO was toxic

SB Ed and staff did not care about views of SS

New Governor set expectations of new ED that he would fix this dysfunctional situation

Rich was brand new at SS SS believed it was a waste of

time to work with SB leader or staff

SS had no input on SB appointments for at least 8 years

Members of SB did not represent the profession and were ill-prepared to perform their duties

2/26/2014

2

How We Got Started

Initial meeting was a private meeting at NASBA’s Annual Meeting in Anchorage, 2005 Agreements reached:

Our roles may be different but the mission is mutual, i.e. Ensure Society members and persons credentialed by the Board sustain the public’s trust and confidence in the CPA profession

Promise to each other: It is fine to disagree, but we will never be disagreeable

Rick held Town Hall meetings around state and included Rich in those meetings

Rick and Rich jointly testified at hearings before California SB concerning importance of individual CPA mobility

Rick was interviewed in SS Magazine and pictured on cover in front of SS offices

2/26/2014

3

Key Activities to Make a Difference

Agreed on wisdom of jointly interviewing and recommending qualified individuals for SB appointments and focusing on individuals most likely to enhance the breadth of expertise within the Board

Jointly worked tirelessly to achieve mobility in 2008, including: Jointly testifying in state legislature Jointly meeting with other stakeholders SS support at every SB meeting A meeting at NASBA’s Annual Meeting in Maui to finalize language of

statute changes, with attendance by NASBA leadership, SB leadership, SS leadership, TAC, AICPA leadership and attorneys representing all parties

Jointly held a lunch between staff of SB and staff of SS. Most of these people had worked together on issues for many years but had never met each other.

Key Activities to Make a Difference

SS and SB worked closely to understand and then oppose proposal to consolidate SB into Department of Licensing. Since the proposal was supported by Governor’s office, SS had to take the lead in opposing this proposal. Fight extended over two legislative cycles. Leadership of SB would have been at 5th level of management

in DOL Employees dedicated to SB would have equaled 9 out of 1,200 Legislatures continually asked why this issue mattered so much

to SS We finally prevailed (for the time being) on May 2, 2011

2/26/2014

4

Seattle Times Headline (5-2-11)

Headline Should Have Been

2/26/2014

5

Key Activities to Make a Difference

SS formally resisted efforts of a dissident SS member to publicly discredit SB ED Attended all SB meetings and hearings on the various

challenges issued Worked with outside consultant hired by SB to evaluate

effectiveness of SB operations CEO’s column in magazine devoted to support of ED and

members of SB Publicly disputed statements of dissident member in testimony

concerning consolidation of SB Diverted political effort from resistance to proposed

increase in tax on profession to a legislative sweep of the Board’s Dedicated Fund Balance

Lessons Learned

Acrimony accomplishes nothing If you work together in good faith, good things are

possible Reasonable people can disagree, but there is no need to

be disagreeable Respect the boundaries, limitations, and unique roles of

each other Always treat each other, their organizations, and their

colleagues with respect Whenever possible, present a unified image to all

stakeholders

2/26/2014

1

March 5, 2014Deputy Director – Lee D. Martin

2014 NASBA ED and Legal Counsel C fConferences

1

Sources of Authority: 31 USC 330; 31 CFR part 10

Authority: To exercise responsibility for all maters related to practitioner conduct, discipline and b f h l ( ) d ( l ) l hpractice before the Internal Revenue Service (IRS) under 31 CFR part 10 (Circular 230), unless otherwise

delegated.

This authority includes but is not limited to: Receiving and processing referrals regarding allegations of misconduct under circular 230;

initiating all disciplinary proceedings against individuals or entities relating to allegations or findings of practitioner misconduct consistent with the applicable disciplinary rules under Circular 230;

Imposing and releasing expedited practitioner suspensions; recommending and imposing all sanctions for violations under Circular 230 and accepting consents to be sanctioned under the same;same;

Making determinations on whether to appeal Administrative Law Judge decisions and orders in Circular 230 proceedings; issuing special orders as proper and necessary under Circular 230 and reviewing and determining petitions seeking reinstatement to practice.

Note: This authority does not include the authority to or collect a practitioner’s tax liability.

2

2/26/2014

2

31 C.F.R. Part 10 (cir. 1886) Treasury Circular No 230 Five subparts: Treasury Circular No. 230 - Five subparts:

◦ Subpart A: Authority to Practice◦ Subpart B: Duties and Restrictions Relating to

Practice◦ Subpart C: Sanctions for Violations◦ Subpart D: Disciplinary Procedures◦ Subpart E: General Provisions

3

• Good character• Good character• Good reputation• Necessary qualifications to enable the representative to provide to persons valuable service; and

• Competency to advise and assist persons in presenting their cases

4

2/26/2014

3

Circular 230 § 10.2 – “Practice before” the IRS is defined as “All matters connected with a presentation to the IRS or any of its officers or employees relating to a taxpayer’s rights privileges or liabilities underto a taxpayer s rights, privileges, or liabilities under laws or regulations administered by the IRS.”

“Such presentations include, but are not limited to, preparing documents; filing documents; corresponding and communicating the [Service]; rendering written advice with respect to any entity, transaction, plan or arrangement, or other plan or arrangement having a potential for tax avoidance orarrangement having a potential for tax avoidance or evasion; and representing a client at conferences, hearings, and meetings.”

Does not cover practitioner conduct during litigation

5

•Reprimand (Private)p ( )•Censure (Public Reprimand)•Suspension•DisbarmentMonetary Penalty (Individuals•Monetary Penalty (Individuals and Firms)

6

2/26/2014

4

Activity Attorney CPA EA Unenrolled Totals

Total Receipts 516 Total Receipts 516 Disbarments (FAD/Consent) - 1 - 1 2 Suspensions (FAD/Consent) 2 2 3 - 7 Expedited Suspensions 29 25 7 - 61

DDA/Other Conditions - 1 2 - 3 Censure 1 2 1 - 4 Reprimands/Soft Letter 150

7

Cease & Desists 50

CWOS, LOJ , NCOA, CWOA 409 Reinstatements 25

Total Dispositions 711

Attorney CPA EA Other TotalsActivity

• Total Receipts• Disbarments (FAD/Consent) • Suspensions (FAD/Consent) • Expedited Suspensions • DDA• Censure• Reprimand/Soft Letter• Cease & Desist

784

1 4 4 2 11

1 1 1 - 3

16 24 4 4 48

2 4 6 1 13

- 2 - 1 3

128

8

• Cease & Desist• CWOS, CWOA, Referred,

Other• Reinstatement Request• Total Dispositions

25

509

26

20 35 15 8 766

2/26/2014

5

9

IRS Examinations Criminal Investigation Division Treasury Inspector General for Tax

Administration (TIGTA) Department of Justice Federal Trade Commission

S A G l d O h S State Attorney General and Other State Offices

10

2/26/2014

6

11

6694(b) Willful attempt to understate the li bilit f tliability for tax

6700 Promoting abusive tax shelters 6701(a) Aiding and abetting understatement

of tax liability0 7407 Action to enjoin Tax Return Preparers

7408 Action to enjoin specific conduct re: tax shelters and reportable transactions

12

2/26/2014

7

6662 Accuracy related penalty with facts suggesting lack of due diligence

6694(a) Negligent or intentional disregard of tax rules and regulations (Look for a Pattern)

6695 – (a) Failure to furnish copy of return; (b) Failure to sign a tax return; (d) Failure to keep copy of tax return or a list of taxpayers for 3 years; (f) Negotiation of check

6702 Frivolous tax returns or submissions 6702 Frivolous tax returns or submissions 7206 Fraud and false statements 6111 and 6112 Failure to comply with tax shelter

registration requirements

13

Loving vs. IRS - The IRS is currently reviewing the decision. The IRS continues to believe that it is critical for taxpayers to be able to rely onis critical for taxpayers to be able to rely on quality work from tax preparers.

Proposed Revisions◦ 10.31 (Electronic Refunds)◦ 10.35 (Rescission of covered opinion reg)◦ 10.35 (Competence)◦ 10.36 (Respondent Superior)( p p )◦ 10.37 (All Written Tax Advice)◦ 10.39 (Rescission re: Bond Practice)◦ 10.82 (Compliance & Procedure)

14

2/26/2014

8

Prop. §10.31. A practitioner may not endorse p § p yor otherwise negotiate any check (including directing or accepting payment by any means, electronic or otherwise, in an account owned or controlled by the practitioner or any firm or other entity with whom the practitioner is associated) issued to a clientpractitioner is associated) issued to a client by the government in respect of a Federal tax liability.

15

Prop. §10.35. A practitioner must possess the necessary competence to engage in practicenecessary competence to engage in practice before the Internal Revenue Service. Competent practice requires the knowledge, skill, thoroughness, and preparation necessary for the matter for which the practitioner is engaged.P §10 36 A i i h h (

2/24/2014

1

19TH Annual Legal Counsel ConferenceMarch 4 5 2014March 4-5, 2014

Employee Benefit Plan AuditQuality Initiatives

Ian Dingwall, CPAChief AccountantEmployee Benefits Security Administration

Quality Initiatives

The views expressed are those of the speaker and do not necessarily represent the official position of the Department.

Employee Benefits Security Administration• Who We Are

• Employee Retirement Income Security Act of 1974 (ERISA)Employee Retirement Income Security Act of 1974 (ERISA)

• What Do We Do• Protect participants and beneficiaries

• Civil and criminal investigations

• Annual reporting and public disclosure

• How It Impacts State Licensing Boards• ERISA requires plan’s to have a financial statement audit

• Performed by an independent qualified public accountant

• Audit must comply with professional standards

2/24/2014

2

ERISA Requirements

Audit RequirementERISA §103(a)(3)(A)• ERISA §103(a)(3)(A) • Audit performed on behalf of participants and beneficiaries

• Covers financial statements and supplemental schedules

Who is a Qualified Public Accountant• ERISA §103(a)(3)(D)

• A person who is a certified public accountant, certified by a regulatory authority of a state,

• A person who is a licensed public accountant, certified by a regulatory authority of a state,

• A person certified by the Secretary……..

The Unique Nature of Benefit Plan Audits

• Complex - Operate in a highly-regulated environment

4

DOL, IRS, PBGC Regulations• Performed on behalf of plan participants and their

beneficiaries • Fees often paid by plan sponsor

• Contain components of a compliance audit. Report on Supplemental Schedules pp

• Audit Different financial statements and participant accounts

• Vast Majority are Limited-scope audits (Unique)

2/24/2014

3

Audit Quality History

• 1989 – DOL Office of Inspector General Report

Concluded employee benefit plan audit quality is poor

5

• Concluded employee benefit plan audit quality is poor

• 23% of plan audits fail to meet professional standards

• 1997 – EBSA Assessment of Audit Quality

• No statistically valid change in audit quality

• 19% of plan audit failed to meet professional standards

d• 2004 – EBSA’s 2nd Assessment of Audit Quality

• Audit quality is getting worse and spreading to largest CPA firms

• 2004 – AICPA creates the Employee Benefit Plans Audit Quality Center

Audit Quality Remains Problematic

• Deficiency rates are unacceptable – 32%

6

• Large variability depending on EBP practice size

• Firms with large EBP practices tend to meet professional standards

• Firms with limited EBP practices have a higher rate of deficient professional workp

• Fee pressure continue

• “Dabblers”

2/24/2014

4

Plan Auditor Universe

• 82,579 Plan Audits

7

• 7,358 CPA firms performing audits

• $6.3 trillion in plan $ passets subject to audit

Tale of Two Worlds

8

50% of Plan Auditors:

Audit 1 or 2 plans

6% of all plans audited

2 million ti i t

1% of Plan Auditors:

Audit 100 or more plans

42% of all plans audited

participants 91 million participants

2/24/2014

5

Top Ten States – Number of Plans

State Number of Plans Number of CPAs Assets Audited

California 7,774 1,253 $535.3 B

New York 6,388 1,038 $527.4 B

Texas 4,724 826 $428.5 B

Pennsylvania 4,612 676 $269.1 B

Illinois 4,103 614 $377.2 B

Ohio 3,902 546 $210.0 B

Ne Jerse 2 941 652 $392 5 BNew Jersey 2,941 652 $392.5 B

Michigan 2,810 388 $373.7 B

Florida 2,786 696 $ 84.0 B

Massachusetts 2,636 422 $174.0 B

How Do We Deal With Such A Fragmented Population

10

• Firm Inspections

• Mini Inspections

• Small Practice I tiInspections

2/24/2014

6

Where Have We Been?

• Firm Inspections

11

p• Reviewed all of the CPA firms performing more than 200 EBP

audits

• Mini Inspections• Reviewed most of the CPA firms performing 100-200 EBP audits

• Small Practice Inspections

• Review of over 3,000 sets of workpapers performed by other CPA firms

• Results largely satisfactory in firm and mini inspections

EBP Audit Best Practices

• Commitment to quality at all levels

D di d EBP l d hi

12

• Dedicated EBP leadership

• Pre-issuance review process for new EBP partners

• Rigorous internal inspection process

• Extensive EBP-specific training

• Critical thinking throughout engagements

Thorough explanatory documentation• Thorough, explanatory documentation

2/24/2014

7

What is our Current Focus?

High Risk Audit Engagements

13

• Multi-employer Plans

• Defined Benefit Pension Plans

• Defined Contribution Pension Plans

• Single Employer Defined Benefit Pension Plans• Single Employer Defined Benefit Pension Plans

• Health and Welfare Plans

• ESOPs

Referrals of the Most Egregious Work

• AICPA Ethics Division

14

• More than 800 referrals

• AICPA’s focus is on rehabilitating the practitioner

• EBSA receives status updates of referrals

• State Boards of Public Accountancy

• Nearly 100 referrals

• Referrals made when AICPA has no jurisdiction

• Resources vary widely among states to handle referrals

2/24/2014

8

Recidivism – Prior Referrals to AICPA Ethics Division/State Boards

Project to Determine If Practitioner’s Current Audit Work Has Improved:

15

Work Has Improved:

• 112 = Cases opened

• 102 = Reviews completed• 47 = Acceptable

• 55 = Deficiencies• 10 cases = one deficiency

• 12 cases = two deficiencies

• 6 cases = three deficiencies

• 9 cases = four deficiencies

• 10 cases = six or more deficiencies

New Initiatives

Peer ReviewAre CPAs complying with state peer review licensing• Are CPAs complying with state peer review licensing requirements• Sample of practitioners in states with peer review requirement

• Provide evidence that an acceptable peer review was performed

Audit Quality Study• Statistically based, nationwide, study

• Provide status of audit quality

• Sample will probably be stratified based upon CPA firm population

2/24/2014

9

Audit Quality Study of Firms

• Statistically based, nationwide study

17

Statistically based, nationwide study

• Provides a current “baseline” of audit quality

• Sample is stratified based upon CPA firm population

• Sample size of 400 plan audits

• Conducted in FY 2014 (Oct 2013 Sep 2014)• Conducted in FY 2014 (Oct 2013 – Sep 2014)

• Workpaper request letters to plan administrators

• Reviews performed in OCA’s offices

17

Firm Qualifications

Peer ReviewAre CPAs complying with state peer review licensing

18

• Are CPAs complying with state peer review licensing requirements

• Practitioners in states with peer review requirement

• Provide evidence that an acceptable peer review was performed

Licensure• Are firms properly licensed where they practice

• Rules vary by state

• NASBA website – auditor mobility

2/24/2014

10

Conclusion

• Long standing audit quality issues

• Audit quality • has improved at CPA firms that perform the largest number of plan

audits

• is still problematic at CPA firms that perform only a limited number of plan audits

• State licensing boards should consider additional educational/experience requirements for plan auditors

And Now it’s Your Turn…

20