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State Board Report

August 2015

At the July 17, 2015 NASBA Board of Directors meeting, potential changes in the NASBA Bylaws were discussed, IT security measures reviewed, the organization’s investment strategy clarified, and plans for leadership development outlined. NASBA Chair Walter Davenport (NC) congratulated the Regional Directors for the success of the 2015 NASBA Regional Meetings and for bringing forward for discussion topics raised by the member Boards during those meetings.

As requested by the NASBA Audit Committee, NASBA Chief Information Security Officer Roy Hall summarized the security program in place at NASBA, first presenting a governance process overview, then a description of external and internal IT audit results, an overview of today’s cybersecurity threats, control opportunities, security incident trending and finally a security program roadmap update. NASBA is doing daily web server vulnerability scans and monthly control testing status meetings are being held to make sure all groups are properly executing the key IT controls. President Ken L. Bishop noted that NASBA allocates significant funding to security measures, as it recognizes the vital importance of IT security.

NASBA is working to develop contacts with federal agencies that make referrals to the State Boards, President Bishop told the NASBA Board. He explained that NASBA wants to know if complaints are going to Boards, that Boards are following through and letting the federal agencies know about the final disposition of the complaints. NASBA is ready to offer resources to the State Boards to help with tracking referrals from federal agencies, funding expert witnesses, or other possible enforcement assistance.

As the practice analysis for the Uniform CPA Examination has proceeded, suggestions involving the administration of the Examination have been offered that will need to be carefully considered by the State Boards of Accountancy, as they are under the Boards’ purview, NASBA Executive Vice President Colleen K. Conrad pointed out to the NASBA Board of Directors. Richard N. Reisig, chair of the NASBA CBT Administration Committee, reported he had seen a draft of the practice analysis’ results, which is to be released at the beginning of September, and underscored the need for the State Boards to review the document carefully because of its impact on their responsibilities. Both the CBT Committee and the Executive Directors Committee have been offering their input on the proposals for the Examination.

Ms. Conrad said there are several test administration-related discussion points that the State Boards need to consider that will not be in the exposure draft, including: extension of testing windows, possible retesting within windows and other topics. If adopted, some test administration changes might require states to make rule or statute changes. Ms. Conrad stressed the need for the State Boards to discuss these issues since uniformity in the Examination’s administration is crucial to preserve mobility. She indicated the Boards would be asked for their input in the coming months.

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