State Board Report
Ease of mobility for qualified CPAs coupled with automatic accountancy board jurisdiction in whichever state such a professional may practice are the twin goals of the Uniform Accountancy Act’s revisions currently out for comment. An amendment to the December 2006 exposure draft was released at the beginning of March following the February approval by both the NASBA and AICPA Boards of Directors. The comment period for the proposed UAA revisions will conclude on Tuesday, May 15, 2007, and the comment period for the proposed UAA Model Rules (as exposed for comment in November) will end on Monday, April 30, 2007. Both exposure drafts can be accessed directly from the opening page of the NASBA Web site, www.nasba.org: just go to “NASBA News.”
The amendment to the UAA exposure draft resulted from the NASBA Mobility Task Force’s discussions with the state boards. The Task Force’s suggestion was to add a clear statement on when firm permits would be required for out-of-state CPAs. This would ensure public protection and strengthen the Section 23 provisions that would enable substantially equivalent practitioners to quickly begin work without additional notifications or fees to other boards. Revisions since the December 2006 draft now appear in Section 23(a)(3), (4) and (7); Section 7(c)(1), (2), (3) and (4); and Section 14(a), (b), (c) and (p).
For example, under the proposed law, a CPA in good standing in a substantially equivalent state could perform an audit in another substantially equivalent state without any additional notification or fee provided his or her firm held a permit in the other state. If he or she were only performing a review in the other state, no additional permit would be required.
Rather than just having a firm permit contingent on opening an office in a state, the proposal also recognizes the need for such a permit based on the type of work being performed.
Ken Bishop, chair of the NASBA Mobility Task Force, has reported seven states are already moving on passing legislation that embraces the newly proposed UAA provisions – even before the comment period has ended or the NASBA or AICPA Board has approved the final version. Mr. Bishop said another 17 states have voiced support for the new proposals.
- MEMBER CENTER