SHARE:  ¡Saludos! No puedo expresar lo emocionado que estoy de estar aquí, sirviendo como presidente de la NASBA, 2024-2025 (Translation: Greetings! I cannot tell you how excited I am to be here, serving as NASBA chair, 2024-2025!) Today, I would like to share a little bit about myself, and the issues that I find most important for the regulation of our profession and for NASBA. A couple of months ago, I gave a talk to a group of interns at my firm who were studying for the CPA Exam. I told them my story of how I became a CPA. At the end of my talk, one of the interns came to me and said, “Your life is like a movie!” While preparing my first address to NASBA, those same words came to mind. And, I agree, my life has been like a movie…a movie of the American dream. For those of you who do not know me, I am a Cuban immigrant who came to the U.S. as a teenager. Old enough not to lose my accent, but young enough to be able to integrate into the American way of life. Sadly, the Cuban government would not let my parents out of the country, so I came over with my two older sisters, all of us under the age of 18. I remember thinking, no problem, our parents will join us in a couple of weeks, but it was not until four long years later that the Cuban government finally permitted my parents to join us here in America. Can you imagine being separated from your parents as a teenager for four years? Unfortunately, this separation resulted in my parents missing so many milestones, including my high school graduation, my formal dances, my birthdays…and of course, I also missed them dearly. Those initial years were incredibly tough as I had to learn English while trying to make straight A’s in school and adapt to a new way of thinking. For many years, I kept looking over my shoulder when I heard someone criticize the American government. I thought, certainly they will be punished just like they would be punished in Cuba. Needless to say, it took a long time to get used to the fact that we enjoy freedom of speech in America. After being reunited, as an immigrant family, we did not have much. I remember driving my first car, which had little holes in the roof on the driver’s side. When it rained, the water would drip all over me. It actually rained more in the inside of the car than on the outside. It was awful. Of course, now I can laugh about those years, because in the end, all that hardship made me who I am today. My parents believed that the way to financial security was through education and going to college was a priority. I was fortunate enough to earn a college scholarship, but I had to work full time and attend school full time. I was busy! When it came time to choose a major, I did not immediately choose accounting. Actually, I didn’t even know what accounting was. But, when I did my career research, it showed there would be a high demand for accountants, and so, an accountant I became. Little did I know that choice paved the way for so many opportunities. Even today, after more than 30 years since my graduation, the demand for CPAs remains high. After my college graduation, I was offered a staff accountant position at Deloitte, where I have worked for the past 31 years as an auditor of big and small, private and public companies. When I got the position, I was beyond happy, thinking, this is the greatest accomplishment of my career. Several years later, I was appointed to the Florida Board of Accountancy consecutively by three different governors, and I thought, this is the greatest accomplishment of my career. I have enjoyed promotions and milestones, but, when I was selected as NASBA chair, I have to admit, this IS the greatest accomplishment of my career! In the end, I think my story is not much different than many of yours. Perseverance and hard work opened many doors, including being a regulator. I am sure you feel the same as I do, proud to have been selected to be responsible for regulating our profession. Take a moment to think about that. Only a few CPAs enjoy that privilege. I deeply appreciate your incredible efforts as board members. Without your commitment, the CPA profession would not uphold the high standards that distinguish us as licensed professionals. I promise to work together to maintain the high standards our public demands. This year, NASBA is 117 years old, and I am so honored and humbled to be following in the footsteps of so many other great chairs that have been such a beacon to our profession. I owe a debt of gratitude to Stephanie Saunders, Rick Reisig, Mike Fritz, Janice Gray, and so many others. I am also very excited for my work to begin with you, the state board members! I have served on NASBA committees and the Board of Directors for more than 12 years, and I have seen the success NASBA has had in supporting the Boards of Accountancy. From the unique achievement of mobility to the ALD, to the implementation of CPA Evolution and the current initiatives surrounding the CPA Pipeline, we must be proud of all those accomplishments. Every year we face new challenges, and this year is no different. We continue to address the persistent issue of the CPA Pipeline and the ability to attract and keep CPAs in the profession. We are now faced with serious issues that threaten CPA mobility and the added pressures of deregulation. In addition, private equity firms are buying public accounting firms and changing the ownership structure and profit sharing of firms, which blurs the lines of independence–a risk to public protection. However, I believe for every challenge there is a solution. The continued efforts of CPA firms, state boards, state societies, the academic community, the AICPA and NASBA are making a positive impact on the pipeline. We have seen an increase in the percentage of candidates sitting for the CPA Exam and we did not experience the expected decrease, which normally occurs after changes have been made to the Exam. While the data and numbers are still concerning, especially the ones indicating fewer students attending college, I am optimistic that young students will continue to see the vast benefits of becoming a CPA. As you know, we enjoy mobility in our profession. Like many of you, I am old enough to remember the “fight” for mobility. NASBA and the member boards believed in the benefits of mobility, and countless hours were spent to achieve it. In the end, mobility was possible due to all jurisdictions becoming substantially equivalent. In the quest to solve the pipeline issue, mobility is now threatened. Let me take a moment to elaborate. There is the notion that if we lower the requirements to become a CPA, more students will flock to the profession. A new pathway consisting of a bachelor’s degree plus two years of experience is being discussed. However, if all the jurisdictions do not adopt this additional pathway, this will lead to a lack of substantial equivalency as it relates to the three Es: education, exam and experience. Remember that initially, in order to achieve mobility, there was a huge effort to ensure that all jurisdictions adopted the 150-hour education rule with one year of experience. As you know, jurisdictions that had a higher requirement would have never agreed to mobility without it. We are now at the opposite end of the spectrum as we are discussing the concept of automatic mobility without substantial equivalency. I would caution the adoption of such a concept. If a jurisdiction decides to adopt an additional pathway with much lower requirements, the states with automatic mobility will be forced to accept that pathway. Is that really the intention? I know that some jurisdictions have proposed “guardrails.” But, honestly, do all Boards of Accountancy have the capacity to monitor individual mobility? Are those guardrails more of a concept rather than practical application? I would propose that the Uniform Accountancy Act (UAA) should be the guardrails for all jurisdictions. If the UAA adopts an additional pathway, jurisdictions adopting those pathways can all enjoy mobility. I believe that changing the requirements to become a CPA should not be an easy process and it should be vetted by all stakeholders. UAA adoption will help preserve the quality of the pathways to become a CPA. I will emphasize, if all jurisdictions adopt the same pathways in the UAA to become CPAs, mobility will remain intact. Further, the current exposure draft related to the proposed new pathway explains in detail the collective thinking of NASBA and the AICPA. The exposure draft goal is two-fold: protect the public through meaningful professional experience while retaining the benefits and freedom of mobility. I urge ALL Boards of Accountancy to take the time to comment and respond formally to the exposure draft. Know that we welcome all responses, whether positive or negative. I can assure you that the viewpoints of the state boards will be the viewpoint adopted by NASBA. Thank you for the incredible efforts of the many NASBA and AICPA volunteers and their staff for making the exposure draft possible. Deregulation is another concern for Boards of Accountancy. While I am aware of the political and economic pressures facing legislators, I would like to remind everyone about the critical role that CPAs play in our society. As a profession, we have a long history and have come a long way to ensure that we have the highest ethical standards, that we mean what we say, and that our reputation for honesty and integrity is recognized for those holding the CPA license. NASBA will continue to support the Boards of Accountancy to ensure the license is protected. Finally, I would like to touch upon the impact that private equity firms are having on CPA firms. There is a fair amount of confusion related to the private equity transactions. No two are alike, and we do not know how each of these firms is complying with existing laws or rules established by Boards of Accountancy. I am not aware of any firm clearing their transaction with the state boards in advance of executing them. It seems to me the approach has been to ask for forgiveness rather than permission. One thing is for certain, audit failures, primarily around independence, will occur at some point. As regulators, should we simply wait for these failures to occur in order to react? Or should we be proactive? I would encourage you, the Boards of Accountancy, to solicit input from the firms in your jurisdiction that have finalized private equity transactions. These firms should properly inform the boards how they are complying with the existing rules and regulations, specifically around independence, advertising and ownership structure. Perhaps some of the current rules are outdated, a new approach is needed, or perhaps compliance can also be enforced by enhanced peer review procedures. I hope that there is a robust exchange of ideas regarding these transactions, and any inquiry by the boards should be guided towards fact finding and solution creation. As shared during the Annual Meeting, the Joint UAA Committee will be meeting to discuss this topic this year. These are not the only issues that may have a long-lasting impact on our profession. We also have to tackle artificial intelligence, crypto assets and the globalization of the workforce. The role of the Boards of Accountancy have never been more important. We must endeavor to elevate our profession while enhancing regulations for the benefit of public protection. I encourage companies and firms to look at their CPAs as precious resources, to ensure their compensation is competitive and fair, which will certainly help the pipeline. All these challenges cannot be resolved by just the Boards of Accountancy and NASBA. We must continue to work with all stakeholders—listen to each other, exchange ideas, build consensus and work together for effective solutions. During my term, collaboration will be key, and we will work to have strong relationships and build trust. Although we must never forget our regulatory role, the truth is, common sense regulations protect the CPAs and in turn the public. There is no downside to working together. As I look at the coming year, I am so pleased with the transition of leadership from Ken Bishop to Dan Dustin. Dan has kept the NASBA Board informed every step of the way, and the result has been a seamless transition. He has gathered a talented executive team that I know will keep NASBA strong and relevant for years to come. So, I leave you with optimism for the future. NASBA will keep supporting and representing the Boards of Accountancy. We will continue to collaborate closely with the AICPA, the state societies, and other stakeholders. Together, we will tackle the challenges ahead and embrace new opportunities to keep our profession strong and relevant. Thanks again for your dedication and commitment to your important work! Gracias! |
