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State Board Report

July 2015

What is the impact on inter-state mobility of states having different rules for CPA-inactive and/or CPA-retired designations? Uniform Accountancy Act Committee Chair J. Coalter Baker (TX) told the Regional Meetings his committee continues to ask this question as a task force works to determine the best rules for what such licensees can do.

Legal Counsel Noel Allen noted that compliance with the UAA model is not great in the area of inactive or retired CPAs. Some states have adopted what is in the UAA and others have established active, inactive and retired statuses for CPAs. Under the current UAA and Model Rules, a CPA-Inactive basically cannot perform any accounting-related service, even volunteer to assist with tax preparation. Whether or not the person is compensated for his or her services is not mentioned in the UAA, Mr. Allen pointed out. "We want to strive for a clearer definition and consistency."

"We don’t want CPAs to avoid discipline by slipping under the ‘inactive’ title," Mr. Baker said. "There are legitimate reasons for going inactive." Mr. Baker told the audience he hoped to get input from the Board members attending the Regional Meetings, on this and other topics being debated by the UAA.

These include establishing procedures for recognizing persons holding non-US designations with audit rights in other countries, without requiring a mutual recognition agreement. This potential new pathway was presented during breakout sessions conducted by NASBA/AICPA International Qualifications Appraisal Board Chair Telford Lodden (IA). Another topic for the UAA Committee will be Model Rules to cover new CPE Standards, which were covered in breakout sessions led by Maria L. Caldwell and Jessica Luttrull of NASBA, with John F. Dailey, Jr. (NJ) and Thomas T. Ueno (HI).

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