State Board Report

November 2007

The importance to the accounting profession of sorting out its “bad apples” was underscored by 2007-08 AICPA Chair Randy G. Fletchall as he described at the Annual Meeting the areas in which NASBA and the AICPA are working toward common goals. He stated: “I want to commend NASBA for its leadership in creating the Accountancy Licensee Database, which has the potential to assist state boards in fulfilling their enforcement role….We support the rightful role of state boards to provide appropriate enforcement and discipline. The database also has the potential to assist with our efforts to achieve and maintain a national mobility system.”

Mr. Fletchall, Ernst & Young’s Americas Vice Chair – Assurance and Advisory Business Services, mentioned three other areas where the joint state board/ professional associations should work together:

– A truly uniform mobility system that will allow licensed CPAs and firms to provide services across state lines without unnecessary burdens, while at the same time increasing public protection, is needed. He stated: “The AICPA leadership will stay fully engaged until together we achieve uniform enactment in every single jurisdiction.”

– The transparency of peer reviews needs to be increased to enable state boards to obtain peer review results. According to Mr. Fletchall, “There is a consensus now that the best way to increase peer review transparency is to use the existing peer review process to facilitate the voluntary disclosure of peer review results to state boards of accountancy. “

– It is time to develop an understanding the international demand for the US CPA designation. “The leadership of AICAP and NASBA are discussing this issue and have dedicated volunteer resources to finding the right solution – an answer that will be built on consensus and communicated together,” the AICPA Chair said.

Mr. Fletchall congratulated NASBA on reaching the 100-year mark and stressed the power of unified action by the state boards and societies, NASBA and the AICPA. “Together we represent the foundation of the public’s trust in the financial community,” he said.

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