State Board Report

May 2009

NASBA’s Board of Directors received the business plan for the international administration of the CPA Examination at their April 24 meeting in Isles of Palms, SC. The plan will be presented at NASBA’s Regional Meetings and there discussed by panelists from the project’s joint NASBA/AICPA task force, including NASBA Past Chair John Peace, AICPA Past Chair Leslie Murphy, NASBA Senior Vice President Ken Bishop and AICPA Examinations Director Craig Mills, and moderated by NASBA Executive Vice President Joe Cote.

Mr. Bishop told the Board that the present plan is based on state licensure requirements and has eliminated earlier suggestions of establishing an alternative credential. “We want to reduce the inappropriate use of the term ‘CPA’,” Mr. Bishop said. While 11 State Boards now receive over 98 percent of the international candidates, over time the way in which these candidates are recognized will have relevance to every state, he commented. After receiving input from the attendees at the upcoming Regional Meetings, the task force hopes to bring to the July 2009 Board meeting a recommendation to move forward with the plan. Mr. Bishop said the task force would like to see the project launched in fall 2010.

Progress continues to be made in having all states adopt mobility legislation, Mr. Bishop reported. As of April 24, mobility legislation had been passed by 38 states. Legislation is close to passage in other states as well, and Mr. Bishop said the goal is to have 43?46 states.

The Accountancy Licensing Database (ALD) has 18 participating states, Mr. Cote reported, with more expected to join by year’s end. New documentation on the internal security of the ALD has been created to address one Board’s request. In addition, an ALD newsletter has been created to chart the project’s progress. All of the states in NASBA’s Southwest Region (Arkansas, Louisiana, New Mexico, Oklahoma and Texas) now are participating in the ALD.

Planning has started for NASBA’s second Forum of International Accountancy Regulators, to be held September 10?11, 2009 in San Francisco, Global Strategies Committee Chair Samuel Cotterell told the Board. The Committee has been discussing ways to increase NASBA’s activity in international organizations to emphasize the State Boards’ relevance in regulation.

NASBA President David Costello reported a letter had been sent to the International Federation of Accountants on April 14 suggesting that NASBA transition its relationship with IFAC into a position that is consistent with enhancing the overall effectiveness of state boards of accountancy. Further talks on this topic have been recommended to IFAC Chairman Robert Bunting.

NASBA Chair Thomas Sadler noted that a letter of comment had been sent by NASBA on March 30, 2009 to the International Accounting Education Standards Board in response its exposure draft on the “Proposed Framework for International Standards for Professional Accountants.” The NASBA letter points out that developing countries that do not have education structures in place will have difficulties in applying the proposed framework.

The next meeting of the NASBA Board of Directors will take place on July 17, 2009.

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