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State Board Report

July 2017

NASBA Chair Ted Lodden challenged the 2017 Regional Meeting attendees to, “Clear the mechanism,” (as Kevin Costner said in “For Love of the Game”) and focus on what is needed for good regulation. Speaking at the Western Regional Meeting, on June 7 in Coeur d’Alene, ID, and at the Eastern Regional Meeting on June 28 in Newport, RI, Mr. Lodden joined with President and CEO Ken L. Bishop to describe the work being done by NASBA to: develop a CPE Audit Tool; push back on legislation that could undermine professional regulation; create transparent mutual recognition agreements covering experienced international professionals; promote meaningful ethics standards; embrace new technology; ensure high accreditation standards; and administer effective peer review programs.

“I don’t think data analytics will bring the end of the CPA profession,” Chair Lodden said, “I think data analytics will strengthen the profession as it will cause practitioners to have higher level skills.” He has assigned NASBA’s Standard Setting Advisory Committee to provide the regulator’s input into the profession’s use of data analytics. President Bishop observed that the accounting profession will be facing competition from other professions as they seek to hire some of the same people. “The CPA profession will be around if we do not lose focus and take our eye off the ball,” Mr. Bishop stated.

Chair Lodden reminded the Boards that NASBA wants their input on the proposed language to permit the use of management accountant titles. “The Boards of Accountancy are the umpire: You have to call it a ‘ball’ or a ‘strike.’ The NASBA Board of Directors spent a lot of time wrestling with the proposed language. Now we need to know if you like it.” The comment deadline is September 30, 2017.

He also called on the Boards to submit their comments to the AICPA on its proposed changes to the administration of their peer review program. In determining which group should serve as the administering entity for a state’s peer reviews, President Bishop commented: “We congratulate the AICPA on continuously improving the peer review process, but State Boards need to have oversight.”

Progress in crafting more transparent mutual recognition agreements with international accounting bodies is being made, Chair Lodden reported. The agreements are being constructed to have appendices that clearly state what is needed for recognition in another country and where there are gaps in the recognition being offered. The goal is to mitigate those gaps in future agreements.

Total registration for the Western Regional Meeting was 198 and for the Eastern 236, with all but one Board of Accountancy represented at either one or the other.