Inside out: California CPA reviews NASBA priorities from the inside looking out.

• Author: Rubin, Diane
• Position: National Association of State Boards of Accountancy - Cover Story

As the profession evolves at a staggering pace, the National Association of State Boards of Accountancy has been busier than ever tackling peer review, ethics, enforcement and professional standards, as well as issues such as education requirements for licensing and license portability.

Two exposure drafts released by NASBA this year look to affect significant changes in these areas.

PROPOSED UAA CHANGES

Released Aug. 1, the Uniform Accountancy Act exposure draft is a joint effort of the AICPA's Uniform Accountancy Act Committee and the NASBA Uniform Accountancy Act Committee. The changes in the exposure draft (the exposure period ends Oct. 3) focus on three areas: mobility, enforcement and professional standards and ethics.

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MOBILITY

The UAA has defined "principal place of business" as "... the office location designated by the licensee for purposes of substantial equivalency and reciprocity." This proposal effectively allows licensees to name their principal place of business. The UAA's proposal also provides for notification for practice privilege purposes through firms, rather than each individual licensee within a firm.

Regarding "substantial equivalency," the draft makes it clear that a CPA is substantially equivalent regardless of the order in which the CPA attained the required education, examination and experience. So, while some states in the past required a sequence of events to unfold before allowing a candidate to sit for the exam--for example, having to meet the 150-hour rule before sitting for the exam--the UAA will allow for differences in timing.

ENFORCEMENT

Documents related to a board investigation, complaint or self-reporting requirement would not be considered public records within the meaning of the state's public record log. In the past, states varied in their approach to these documents, but the proposed draft would state that these are confidential documents.

The UAA proposal also would allow state boards to cooperate in investigations with additional state and federal regulatory authorities, besides boards of accountancy, as well as appropriate foreign regulatory authorities.

PROFESSIONAL STANDARDS

Another significant change is the definition of "good moral character," a trait required in a number of states to qualify as a CPA. In the past, the UAA defined this trait as "the lack of a history of dishonest, felonious acts."

Rather than describe what is not good moral character, the proposal has...