Mobility arrives: plus: enterprise zone overhaul, audit firm legislation.

• Author: Allen, Bruce C.
• Position: Capitol Beat

California's recently passed mobility legislation took effect in July, which means big changes for CPAs serving the needs of clients across state boarders. The change in law brings California into conformity with the interstate practice laws of 48 other states and the District of Columbia. With mobility, CPAs will now have an easier time providing services to their clients and will no longer have to obtain a notification or a license from each state where incidental services may be provided.

[ILLUSTRATION OMITTED]

Only firms providing audits, reviews and compilations, and examinations of prospective financial information for entities headquartered in California must register with the California Board of Accountancy.

The new mobility provisions remove some of the previous burdens CPAs faced to provide timely services across state lines, as well as more effectively represent their clients. The more streamlined process for interstate practice also will cut down on costly delays.

However, before beginning any interstate engagement, licensees should check the specific requirements of the state they are looking to perform services in to make sure there are no additional requirements that need to be met.

As part of the changes, the CBA has redesigned the license lookup feature on its website, www.cba.ca.gov to include information regarding an out-of-state licensed CPAs ability to practice public accountancy in California. In addition to individual CPAs, consumers will also be able to look up out-of-state accounting firms registered with the CBA. To reflect the mobility changes to the practice privilege program, the CBA has updated the Practice Privilege Handbook, and provided links to CPAVerfiy and the license look-up feature of other state boards of accountancy.

All licenses are encouraged to visit the CBA's website to review the new mobility provisions and the redesigned sections.

This important change in law is another step in the direction CalCPA is working to maintain California's substantial equivalency with other states, which means that California's licensing requirements are considered substantially equivalent and California CPAs are able to provide services outside California on behalf of California taxpayers.

Part of this process includes transitioning California's education requirements for CPA licensure to 150 hours, which will be completed when the new 150-hour education requirements take effect Jan. 1, 2014. You can review die new...