www.macpa.org

The Maryland Association of CPAs

Welcome to the CPA Profession!

Congratulations New CPAs!

We believe in CPAs! Period.

And we believe in you! Congratulations!

Maryland CPA Facts

Tonight marks the sixth year of our official swearing-in ceremony developed in

cooperation with the Maryland Department of Labor

Licensing & Regulation

“Let your future be lit with the knowledge of

the past.”

- Sakichi Toyoda, Founder, Toyoda Automatic Loom Works, predecessor to Toyota Motor

Company

Barry C. Melancon is the President and Chief Executive Officer at the American Institute of Certified Public Accountants

(AICPA), the national professional association of CPAs, with nearly 386,000

members worldwide.

Welcome Barry Melancon, CPA, CGMA,

President & CEO of AICPA

Michael Vorgetts joined the Division of Occupational and

Professional Licensing in August 2012 to serve as Deputy

Commissioner after four years with the Maryland Department

of Legislative Services. He currently serves as the Acting

Commissioner.

Welcome Michael T. Vorgetts, Acting Commissioner

Maryland CPA Facts

Maryland State Board of Public AccountantsChair - Thomas J. "Tim" Murphy, CPA, Prince George's CountyMac N. Claxton, CPA, Prince George's CountyElizabeth S. Gantnier, CPA, Frederick CountyClifton B. Jeter, CPA, Montgomery CountyElla H. Pierce, Baltimore CityNaomi B. Powell, Prince George's CountyRaymond C. Speciale, Esq., CPA, Frederick CountyDennis L. Gring, Executive DirectorLinda Rhew, Administrative Officer

Source: Newseum in Washington DC

Maryland CPA FactsAssociations have their roots in the First Amendment of the US Constitution that allowed for:• freedom of speech• to peaceably assemble• to petition the Government for a redress of grievances

Maryland CPA Facts

Two Marylanders are credited with the formation of the CPA Profession in the

United States:

Edward C. Cockey as the first president of the AICPA and

Henry Harney as the source of the concept of a

Certified Public Accountant.

Source : MACPA History Book

A profession has three major attributes

1. A distinct and evolving body of knowledge2. A commitment to the public interest – licensed

by the government3. A code of conduct and ethics

Maryland CPA Facts

Town Halls VUCA

Maryland CPA FactsThe CPA Examination

The 1900 Exam1. Practical

Accounting2. Theory of

Accounts3. Auditing4. Commercial Law5. Commercial

Arithmetic

The 2013 Exam1.Auditing &

Attestation (AUD)2.Business

Environment Concepts (BEC)

3.Financial Accounting & Reporting (FAR)

4.Regulation (REG)

Maryland was the third state in the U.S. to recognize the public

interest of accounting and financial reporting by enacting a

law that established and regulated the practice of the

profession of PUBLIC ACCOUNTANT.

On April 10, 1900, Governor John Smith signed into law

Chapter 719 establishing the (Certified) Public Accounting

designation

Maryland CPA Facts

CPExpress Select new

Maryland CPA Facts

The Maryland Association of CPAs, Inc. was established on

February 12, 1901 for the purpose of uniting CPAs across Maryland and enabling them to

conform to the high standards of the CPA profession.

Maryland CPA Facts

We updated our mission and

purpose in 2000 (and logo in 2011)

to reflect the changing world of the CPA Profession

and our Association.

Maryland CPA Facts

We will help CPAs compete and thrive in a rapidly changing

environment by: • Connecting them to their profession, each

other, and the business community. • Protecting and promoting the CPA license

and brand.• Achieving career success through technical

excellence, thought leadership, best-in-class professional development, and being their trusted filter for information.

“From then on, they are no longer

isolated men, but a power one sees

from a far, whose actions serve as an

example; a power that speaks, and to

which one listens.”

– Alexis de Tocqueville

Maryland CPA FactsAssociations were a “uniquely American institution” first observed by the French political philosopher in 1835 when he

noted:

Nowhere is this more evident than in our advocacy efforts at the State Board of Public

Accountancy and in Annapolis for our Legislature…

CPAs in record attendance at CPA Day in Annapolis

CPA Day in Annapolis January 15, 2014

20

KEY

GOALS/RESULTS

PROJECTS/STRATEGIES

PRODUCTS/SERVICES/SITES

PEOPLE

KEY EVENTS

LEARNING

MACPA Founded 1901

Dateline

Gov. John Smith signs CPA Bill

April 10, 1900MACPA first attempt

to rights to audit

MACPA passes 1924 Law

1900 19871974 1976

In the Beginning...

MACPA stops

several

attempts to

amend 1924

law

Maryland becomes the 1st state to restrict

practice for CPAs

1901

Larry Kamanitz chairs Legislative Committee

MACPA tries to

pass CPE

Bill in 1974

& 1975

AG opinion of 1981Grants rights to non-CPAs

for Reviews & Comps.

MACPA Passes Mandatory CPE Bill

Sarbanes-Oxley

Act of 2003

Max Teichman, Frank Blacklock & William Rogers

Interstate Practice &

Uniform Accountancy Act

Rise of special interests

& non-CPAs

HB 1296 Mobility Passes

Quality Review Legislation fails

150 Hours Ed Requirement passes

Effective date is January 1, 1999

• CPA Bill signed April 10, 1900• MD is 3rd state (NY & PA)

1922 1924 1981

Non-CPAs begin

attempts at 2nd

Tier license

2005

HB 1261 re-writesCPA Law - 1986

MACPA amendments to ed requirements fail

Dawson Grove chairs Legislative Committee

Allen Deleon chairs Legislative Committee

1993 MACPA passes

MD LLC & LLP Acts

Rights & Recognition• Privilege of Self-

Regulation• Right to Sole Control

over an Area of Practice

History of CPA Legislation

1993 20062003

UAA MACPA passes 1 yr

Experience Requirement

2007 200820011999

SB 560 DefeatedMaryland Corporate Accountability Act

MACPA requests reversal of AG Opinion – “This is not an audit”

language added

Terry Hancockchairs Legislative Committee

MACPA Forms Task Force and surveys members

88% Sub Equivalency76% Peer Review & Safe Harbor

68% Non-CPA Ownership

State Board of Accountancy

formed

UAA MACPA passes

non-CPA Ownership

Computerized CPA exam

Separate Fund Bill passed

Maryland Special Session

Oct – Nov 07

MACPA defeats Sales Tax on Services

Amended Corporate Tax Reporting Bill

MACPA wins

State Board

To qualify Peer

Review for CPE

credit

MACPA wins use of “consultants” in firm

letterhead at State Board

Accounting Reform task

Force addresses

SOX

State Board HearingMay 1, 2003

MACPA passes new simpler CPA exam Education Rules

Maryland Association of CPAs

Maryland CPA FactsMaryland was one of the first states to enact a law requiring mandatory Continuing Professional Education (CPE), recognizing the public interest of CPAs keeping up with changes in standards and law. This has turned into a core value of lifelong learning for CPAs.

And continues to be modernized to meet the demands of the Profession and the changing

world we live in…

Legislation

Regulations

Policies & Procedures

• SB 128

• 09.24.02 Regulations

• Fields of study

Maryland Senate & House passes bill

A Bill SB 128From State Board

LawMaryland Governor signs into law

Maryland State Board of Public Accountancy

Clarify thru regulationsAnd enforce the law

Tax Curriculm

1040 fast track

Maryland CPA FactsIn 1924, Maryland was the first

state to enact a law restricting the practice of public accountancy to licensed CPAs and recognizing the important role CPAs would play in the growing commerce and industrial sectors of the Maryland economy.

This would resurface with the advent of Accounting & Review services in a 1981 Attorney General Opinion allowing non-CPAs to offer reviews and compilations in the State of Maryland, only to be reversed by legislation sponsored by MACPA & the State Board in 2010 reverting back to the original intent of the 1924 law.

More than 100 MACPA members call our senators and we defeat the amendment!

VICTORY!

Maryland CPA Facts

Maryland CPA Facts“A large field for the

ladies”MACPA was one of the first organizations to

recognize the importance of women in the CPA profession

with the admittance in 1909 of two members,

Elsa Doetsch and Florence Hooper. The Maryland BAR would not admit

women until 1946 Source: MACPA History Book

ETHICS

Maryland CPA FactsMaryland continues to be a leader in the

CPA Profession and recognized as an innovator.

MACPA’s CEO was named as

the second most

influential person in the Accounting Profession

among the Top 100 list by Accounting

Today Magazine. It was Tom’s

ninth year on the list.

Maryland CPA FactsMaryland continues to be a leader in the

CPA Profession and recognized as an innovator.

Maryland CPA Facts

In 2011, MACPA led the CPA Horizons 2025 Project for the AICPA using our i2a: Insight

to Action strategic thinking system to design and facilitate over 30 future forums with 1,000 CPAs to create a vision for the

Profession in 2025.

Maryland CPA Facts

MACPA members have a competitive edge with 24 hours of free CPE and the best learning resources in the CPA Profession

Maryland CPA FactsMACPA can help you maximize your career trajectory through our Business Learning Institute’s leadership proficiency training.

http://cpa.tc/thebounce

NEW BLI WEBSITE partner ad

“Association members earn

higher salaries, like their jobs more, and are happier people, on average, than those that do not join associations.”

- Where the Winners Meet: Why Happier, More

Successful People Gravitate Toward Associations Study

by William E. Smith

Maryland CPA Facts

Association by Seth GodinWho you hang out with

determines what you dream about and what you collide with.

And the collisions and the dreams lead to your changes.

And the changes are what you become.

Change the outcome by changing your circle.

www.macpa.orgThe Maryland Association of CPAs

There is an old adage that says, "you can tell a lot about a person from the

company they keep.”We hope you will choose to “associate” with us. Best wishes for a successful career as a

CPA!