What Does It Take?

• Author: Allen, Bruce C.
• Position: Accounting accreditation standards - Brief Article

Future of CPA Profession Hangs in the Balance

All CPAs are now required to hold a doctorate in accounting. No grandfathering will be permitted.

Did we get your attention? Did we raise your ire?

The doctorate requirement is a fabrication, but there are several radical changes pending in Sacramento that should peak your interest:

* Abolition of the Uniform CPA Exam;

* Establishment of a specialty certification for auditors;

* Rejection of all elements of the Uniform Accountancy Act;

* Reduction of the current 80 hours of continuing education for license renewal;

* Reconfiguration of the California Board of Accountancy to house a majority of unlicensed members; and

* Overturning the California Supreme Court decision in the Bonnie Moore case concerning advertising by unlicensed bookkeepers.

The Department of Consumer Affairs and the legislative consultant for the Joint Legislative Sunset Review Committee have brought forth these proposals as a part of what we believe is a calculated political attack that jeopardizes the integrity, competence and future of the CPA profession. These proposals could result in the eventual deregulation of the CPA profession and immediately devalue your CPA certificate.

No Specialty Auditing Certificate

This currently vague proposal to create a specialty certificate for auditors could result in a two-tier licensing structure, or require CPAs who perform audits or reviews to complete additional experience requirements and receive some kind of specialty designation.

The proposal is problematic because it puts California out of step with the rest of the nation which is moving toward unifying CPA licensure requirements. Also, a more stringent experience requirement could result in a serious supply issue.

Keep CE Requirement

Currently, California CPAs are required to take 80 hours of continuing education every two years to renew an active license. A CBA study found that the CE requirement enhances consumer protection and is supported by the vast majority of licensees.

Maintain a Licensed Majority

AB 270 would potentially give unlicensed individuals, with their own special agendas, control of the CBA by changing its composition. A cornerstone of the CPA profession is the integrity of its members. The profession's future integrity and independence is in peril if oversight is left to the whim of individuals who have a pecuniary interest in regulating the profession through adoption of California-only practice standards.

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