Can you call yourself a CPA?

• Author: Reed, Ronald O.
• Position: Chief financial officers with certified public accountants

Recently, we spoke with an acquaintance who was looking for a CFO position. He told us that he had been disqualified from many opportunities because he did not have a certified public accounting certificate, and that it had crossed his mind to just include the designation on his resume because nobody would know the difference.

While this is clearly unethical, it does highlight an important point. Are you sure you can legally call yourself a CPA? Are you (or someone who works for you) one of the many CFOs, controllers or accountants who may be inappropriately using the CPA title and violating state laws without even knowing it?

You probably assume you can use the designation on your business card or resume, with your signature on correspondence, or with your name in a directory. But unless you hold both a valid CPA certificate and are licensed by your state, you may very well be violating state laws by using the designation in any of these instances.

When state regulations are revised, the changes can affect whether a person can still legitimately use the CPA designation. During the past several years, the regulations have changed in many states, so it is quite possible that many individuals who once were considered CPAs may no longer qualify.

All states require licensed CPAs to report to them and to meet state requirements. Most require some type of continuing professional education (CPE) and require a minimum number of hours in technical topics. Many state boards of accountancy now require CPAs to complete two hours of CPE courses on state rules every two years.

Plus, some states specify an expiration date for a certificate or license. For example, in Colorado, if an individual has not renewed or had a license in the past six years as of May 1996, he or she must meet the requirements to become certified all over again, including retaking the CPA exam.

TRUTH OR CONSEQUENCES

Financial executives have always stressed to their employees the importance of ethical behavior and compliance with established laws. Anyone inappropriately using the CPA designation should consider the stakeholders affected by that decision. The individual, his or her employer and the accounting profession are all affected.

If you suspect an employee may be inadvertently or deliberately using the CPA designation improperly, your company may be vulnerable to repercussions. Depending on your industry and the circumstances around the person's misconduct, your company could...