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State Board Report

November 2015

Part of NASBA’s 2016-2019 strategic plan is to "promote the CPA license to ensure an adequate supply of CPAs to meet the needs of the public," NASBA President and CEO Ken Bishop pointed out at the Annual Business Meeting. Topics discussed during the 2015 Annual Meeting supported that goal. One breaking topic was the impact of the October vote of the American Institute of CPAs’ Council to allow non-CPAs to obtain the CGMA credential and become members of the AICPA. President Bishop reported he has been in discussions with AICPA leadership over the potential threat to the CPA candidate pipeline as well as the potential public confusion over the use of a title similar to CPA granted by the AICPA to a non-CPA. As a result of those discussions, AICPA will emphasize that those obtaining the CGMA designation follow state laws and rules, including those related to the use of titles and credentials. Additionally, CGMAs who are not licensed CPAs will be required to use "non-CPA members of the AICPA" when referring to their AICPA membership to avoid public confusion. CGMAs will also be prohibited from practicing public accounting or creating CGMA firms, and will not be allowed to sign attest reports or use AICPA standard language.

President Bishop advised the Boards to look at how their own state law is modeled after Uniform Accountancy Act Sections 14 (c ) Unlawful Acts, 14(g) Other Misleading Titles, and 14 (h)(2) Use of Titles in Reports to determine if the use of CGMA would be problematic. Meaningful conversations with the AICPA will continue regarding the promotion of CGMA and how it will impact the CPA pipeline, President Bishop reported. He expressed his gratitude to AICPA leadership for their willingness to work to mitigate NASBA’s concerns.

NASBA is increasingly strong and relevant, President Bishop assured the Annual Meeting. Mission spending in support of the member Boards totaled $8.5 million this past year, up from $7.7 million the previous year. Thirty-two states are using NASBA’s CPA Examination Services; the NASBA International Evaluation Service is being used by 52 Boards; and the National Registry of CPE sponsors includes approximately 2,150 CPE providers. Significant investment is being made in IT to ensure NASBA’s systems remain intuitive, reliable and secure. Work has recently begun on completely updating the National Candidate Database. Remodeling of NASBA’s headquarters in Nashville has started and will feature consecutive floors, high-speed wifi and more spaces for collaboration.

NASBA Center for the Public Trust President Alfonzo Alexander announced the "proactive ethics arm of NASBA" has reached its tenth year of operation. It has 27 student CPT chapters and expects to have 30 by the end of 2015. Other CPT activities outlined by Mr. Alexander included the Ethics in Action Video Competition, Ethical Leadership Student Certification Program, CPE Resources Program, Professional Training and Certification, Being a Difference Awards and numerous presentations and conferences.

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