Page 556 - Encyclopedia of Business and Finance

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NAICS from fines, to additional education requirements, to pre-
report issuance reviews, to withdrawal of license.
SEE North American Industry Classification System
The average CPA is generally more aware of the activ-
ities of the professional associations than of those of the
state board of accountancy. However, the professional
NASDAQ COMPOSITE path of all CPAs all begins with the board: they had to
apply to the state board of accountancy to take the Uni-
INDEX form CPA Examination; then they took the examination
SEE Stock Indexes under the auspices of a state board and waited to hear the
results of that examination issued by the state board. It is
the state board that requires renewal forms and fees to be
submitted and the state board that allows licensees from
NATIONAL other states to begin to practice within its borders. Fortu-
ASSOCIATION OF STATE nately, in the vast majority of cases, the licensee will never
see the disciplinary side of the state board’s operations.
BOARDS OF However, that is a vital aspect of the board’s operations
ACCOUNTANCY that protects the public from unqualified practitioners.
More than 100 years ago, in 1896, New York appointed The wronged consumer needs no legal counsel. A com-
the first board of certified public accountant (CPA) exam- plaint can be brought directly to the board by any individ-
iners. By 1925 all U.S. jurisdictions were administering ual or organization. In fact, government agencies that
CPA examinations. Though all states today administer a uncover inferior performance by licensees are encouraged
to refer their complaints to the accountancy boards. With
single Uniform CPA Examination, there are still fifty-four
independent boards of accountancy (for all states, the Dis- the growth of the Internet, several states accept on-line
trict of Columbia, Guam, the Virgin Islands, and Puerto complaints via their Web sites.
Rico) that issue licenses to accountants. These boards set
entry requirements for their licensees; enforce measures to BOARD MEMBERSHIP
support continuing competence, through both profes- For a long time, the CPA profession has prided itself on
sional education and/or peer review requirements for self-regulation, partially because of the discipline enforced
renewal of individual licenses and firm registrations; and by its professional organizations and partially because the
insure that technical and ethical standards are upheld via state boards are primarily composed of licensees. Typically
disciplinary proceedings growing out of a complaint- members of a board of accountancy are appointed by a
based system. Board-levied penalties for malpractice range state’s governor and include both licensed CPAs and pub-

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