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State Board Report

June 2016

Are State Boards ready to offer recognition to qualified international professionals without requiring their home regulators to do the same for U.S. CPAs? On June 1 the AICPA/NASBA Uniform Accountancy Act Committee released an exposure draft that covers both international recognition changes for the UAA and changes to examination administration as described in the Model Rules. Comments are due by September 1, 2016 to lhaberman@nasba.org and uaaexposuredrafts@aicpa.org.

During NASBA’s June Regional Meetings, varying views on the proposals were heard. While some questioned why U.S. Boards should not be eager to support a pathway that would make experienced international auditors more readily available to their states, others questioned the fairness of charting out a path that would not have an equivalent route for U.S. CPAs who practice abroad.

"We are not abandoning our efforts to establish mutual recognition agreements," IQAB Chair Ted Lodden (IA) stated. "This new proposal reflects the realization that we have a global economy and international professionals are practicing in the U.S. – but many are not CPAs and, consequently, are not under the regulation of the State Boards of Accountancy. Is that protection of the public? We would expect other countries will come to a similar realization about professional work being done in their jurisdictions and will also want to put MRAs in place."

Since 1991 NASBA and the AICPA have been following procedures that require foreign recognition of U.S. CPAs abroad. Mr. Lodden observed: "This is a proactive move."

Opening up the Model Rules allows for revisions in the Examination’s administration including how testing windows and the Examination’s content are described. These changes accommodate the Examination’s revisions coming into place on April 1, 2017.

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