New Board Member Orientation - Regionals 2011
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Transcript of New Board Member Orientation - Regionals 2011
WELCOME
New Board Member OrientationPresented by
Michael Daggett
Introductions of Directors and
SpeakersPresented byTed Lodden – WestKen Odom - East
What Are the Responsibilities of
a Member of a Board of
Accountancy?Presented byLaurie Tish and Karen Turner – 2011 Western Ken Odom and Kim Tredinnick – 2011 Eastern
Why Did You Agree To Serve On The State Board?
Heard they served good coffee. High per diem. The seats on the Mortuary Board were filled. To escape from my clients (kids, dog, cell
phone….). Wanted to make life more hectic for my
partner. Other….
Other Possible Reasons for Serving on the Board
Want to give back to the profession that I have enjoyed.
Desire to get rid of the “bad apples.”Need to ensure the public’s interest is protected.
Believe licensing carries an obligation that requires
monitoring.Fulfilling my civic obligation.
Primary Functions of the State Board of Accountancy*
License qualified individuals and firms to practice public accountancy.
Investigate and adjudicate complaints against licensed CPAs and CPA firms.
*State of Washington Rule 18.04.015
Ensure the ongoing competence of its licensees through required continuing education and Quality Assurance Review or approved peer review.
Enjoin the unlicensed practice of public accountancy and the unauthorized use of the CPA designation, all in accordance with the Public Accountancy Act.
Whom Do You Represent?
My employer/firm My industry group The CPA profession The general public Business community Users of financial
information
CPA candidates Educators My political party The Governor Consumer protection
groups Others…?
Size and Staff of State Boards Vary
(See NASBA State Board Profile) Persons Regulated (California~74,000 compared to
Virgin Islands ~50) Board Members (range of 2-22)
Licensee members (range of 2- 17) Public members (range of 1-8)
Board Staff (range of 1 part-time – 85 full-time) Executive director, deputy director Administrative staff Legal counsel
Board Committees
RulesContinuing Professional
EducationPeer/Quality Review
Compliance Assurance
CommunicationsComplaint/Investigation
ExamOthers?
Fulfilling The Board’s Responsibilities Set and maintain license requirements – “The
3 Es” (Education, Examination, Experience)
Adjudicative functions Complaint-based system Referrals from other regulators
Ensure continuing competence of licensees Mandate continuing professional
education Require peer review/compliance
assurance Support mobility
Considering How Boards Operate:How Can We Prevent An Expectation
Gap? Communication among Board, CPAs and
public Balance expectations of:
Public and users of CPA services Exam candidates Licensees Board members
Oversight of ‘touch points’ with stakeholders Exam candidates Licensee renewals Disciplinary matters – both the complainant and
the licensee
General Advice Be familiar with your Board’s organization, internal
controls and policies and procedures Avoid “ex parte communications,” off-the-record communications with one of the parties to a proceeding Direct inquiries to Board staff, rather than attempting
to answer them yourself Maintain confidentiality of details related to the
Board’s activities Support Board actions with relevant statutes and
regulations If your Board needs help, call your Regional Director
or NASBA!
NASBA = 55 Boards of Accountancy
• Current Accountancy Board members = NASBA Delegates• Former Accountancy Board members = NASBA Associates• NASBA’s member Boards are located in:
– 50 states– DC, Guam, Puerto Rico, Virgin Islands and the CNMI
The State Boards of Accountancy are collectively the largest regulatory body of licensed public accountants in the world.
NASBA/AICPA Joint Efforts
• Uniform Accountancy Act• International Qualifications Appraisal Board• Uniform CPA Examination• Standards for CPE Sponsors• Coming Soon – International Exam
administration
AICPA/NASBA UAA• Sets substantial equivalency
requirements• Promotes uniformity• Basis for mobility among states• Basis for international Mutual
Recognition Agreements
NASBA/AICPA International Qualifications Appraisal Board• Mutual Recognition Agreement partners:
Canadian Institute of Chartered AccountantsInstituto Mexicano de Contadores PublicosChartered Accountants of IrelandInstitute of Chartered Accountants in AustraliaNew Zealand Institute of Chartered Accountants
Uniform CPA Examination
• 4-part computer-based since 2004• Three partners: AICPA (content and scoring),
NASBA (central clearinghouse for information on eligible candidates), Prometric (testing centers)
• Agreement extended until 2024.
Examination Review Board
• Body which reviews all aspects of the Uniform CPA Examination on behalf of State Boards as a basis for their reliance on the Examination’s results
• Annual report to Boards presented at Regional Meetings
CPE Program Standards• Updated this year with input from
AICPA.• Incorporates material previously
only covered in “Frequently Asked Questions.”
• Recognizes newer CPE formats.• Will be appended to UAA.
Acronym Quiz
Standard setters:PCAOB, IASB, FASBAssociations:IMCP, CICA, IFAC
• Exam-related:FAR, NTS, BEC
Designations:CA, CPA, EA (see chart in meeting
binder)
NASBA: Increasing the Effectiveness of State Boards of Accountancy.
An Overview of
NASBAPresented byDavid Costello
“Not Quite Masterpiece
Theater”Act I
Ted A. Lodden and Janice Gray2011 Western Regional
Bucky W. Glover and Jeff Chickering
2011 Eastern Regional
Who Are the Key Players and Making the Headlines?
In The Beginning….
• “Resolved, that the New Jersey Board of Public
Accountants invite the Examiners appointed by
the Regents of the University of New York, the
Examiners appointed by the University of Illinois;
and the members of all State Boards of Public
Accountants, to meet at the Marlborough-
Blenheim Hotel at Atlantic City, N.J. in October
1908, to confer in regard to matters of mutual
interest.”
Who cares about what the Board of Accountancy does?Public relying
on financial information prepared by licensees
CandidatesEducatorsLicensed
ProfessionalsInternational
professionals and regulators
Others?
Speaking for the PublicFederal Agencies
US Trade Representative
HUDSEC
Consumer groupsCenter for Public
Interest Law (California)
Accountants for the Public Interest
Elected officialsGovernorsLegislators
Others?
Speaking from the Campuses
American Accounting Association (AAA)
Association of Collegiate Business Schools and Programs (ACSBP)
Association to Advance Collegiate Schools of Business (AACSB)
Beta Alpha Psi
Others?
Speaking for the ProfessionAmerican Institute of
CPAsState CPA SocietiesNational Society of
Accountants (NSA)International Federation
of Accountants (IFAC)Association of
Government AccountantsAssociation of Hispanic
CPAsThe Accountants
Coalition (TAC)
National Society of CPA Practitioners (NCPAP)
National Association of Black Accountants (NABA)
American Society of Women Accountants (ASWA)
Institute of Management Accountants
Financial Management Association International
Etc.
Ironing Out DifferencesLegislation is more likely to be passed if
stakeholders can work out their differences before the legislation is introduced.
Mobility Legislation – Successful when state board and professional groups are in agreement
Education Legislation – Successful when state board, profession and educators are in agreement (120/150 hour debate)
Can your board lobby?Many boards are prohibited from
lobbying, or hiring a lobbyist – but they can “educate” legislators or serve as “resources” for legislators. What can your board do to influence legislation?
Can your board establish rules without legislative approval?
How does your board reach the public?Hold public forums?Meet on college campuses?Enhance its Web site?Other avenues for public input?
NASBA ResponsesNASBA representatives attend and offer written/oral
testimony at federal and state hearings in support of state boards of accountancy, and at professional conferences. Have a hearing coming up and you want NASBA there? Contact Linda Biek at [email protected]
NASBA State Board Relevance Committee –Web page NASBA Ethics and Strategic Professional Issues
CommitteeMonitors and evaluates the issues of AICPA’s PEEC.
NASBA Regulatory Response CommitteeResponds to exposure drafts on standards, policies,
etc., that could impact state regulation of the accounting profession.
Headline events“Never trust a reporter with a nice smile.”
-- William Rauch
Bad news travels fast. Good news takes the scenic route.”
-- Doug Larson
“A lie can travel half way around the world while the truth is just putting on its shoes.”
-- Mark Twain
IRS Regulating Tax PreparersIRS Commissioner Shulman announces
multi-year effort to provide standards for and oversight of the tax preparation industry. – January 2010
Non-CPA, non-lawyer, non-EA preparers to meet program’s requirements.
Databases to be created with new registration numbers.
Fall 2011 certain paid preparers will be required to pass new competency test.
Expected to start in 2012, certain paid preparers must have 15 hours of continuing education annually.
Regular renewals of Preparer Tax Identification Numbers (PTINs).
Standards and Fraud Make News
Standards Fraud
Congressional Hearings
IFRSSEC considers IFRS
Roadmap – July Panel
Adoption by other countries
Impact on private company standards
SchemesPonzi schemes
across the countryBrokerage firmsInternational
incidents
-- Will Rogers
“All I know is what I read in the papers.”
“Not Quite Masterpiece
Theater”Act II
HOW WE COMMUNICATE
Thomas Kenny - Director, Communications
Louise Dratler Haberman - Director, Information & Research
WEB SITE www.nasba.org
• Links to member boards’ sites• Newsletter highlights• Meeting presentations• Committee reports• White papers, letters
• Meeting information• Committee membership lists• Bylaws, UAA, other NASBA documents• Stay tuned for new features
MEETINGS• Annual Meeting• Regional Meetings• CPE Conference• Executive Directors
Conference• Legal Counsel
Conference • Committee Meetings• Special Conferences
PUBLICATIONS
• State Board Report - Newsletter• CPA Candidate Performance on the
Uniform CPA Examination• Ethics Matters – CPT Newsletter• ALD News
QUARTERLY MAILING• Executive summary
and all responses to Regional Directors’ Focus Questions
• Highlights of Most Recent BOD Meeting
• Approved Minutes of Previous BOD Meeting
• New Focus Questions
OTHER MEDIA
• NASBA Twitter• News blast• Press Releases (PRNewsWire)• Quick Polls (for Executive Directors
seeking prompt answers to administrative questions from other Executive Directors)
• To reach any NASBA staff member just send your message to first initial then last name then @nasba.org
• [email protected]• [email protected]• [email protected]• [email protected]
EVERYONE NEEDS E-MAIL• E-mail reaches out to
quickly distribute information and get current responses. It saves us time and money. Please promptly notify NASBA ([email protected]) of any e-mail address change.
Questions