Page 558 - Encyclopedia of Business and Finance

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National Business Education Association

practice increases cross-border engagements, all states are programs and experiences that help ensure the licensee’s
being encouraged to move in the direction of adopting competence.
one set of standards, as detailed in the UAA. This model In many states CPA firms are required to register with
act calls for 150 hours of education, one year of experience the accountancy board. The firms are then required to
as attested to by a CPA, and successful completion of the participate in quality review programs periodically, which
Uniform CPA Examination. For those licensees signing bring the firms’ attest services under the review of outside
audit reports, additional experience is required. To find professionals.
out the specific requirements for each state, a candidate
needs to check with the state board of accountancy.
AREAS OF COMMITTEE ACTIVITY
The required 150-semester-hour education includes a
baccalaureate degree with a concentration in accounting, The focus of NASBA’s committees echoes the areas of the
boards’ mutual concerns. Examination, for entry-level
though not necessarily an accounting major. Again, it is candidates as well as international licensees seeking U.S.
necessary to check with the appropriate accountancy
recognition, continues to be a primary area of interest.
board.
Ensuring that the examination adequately measures com-
Each of the state boards is charged with the responsi- petence is an ongoing concern. The Examination Review
bility of administering the Uniform CPA Examination, Board audits the preparation, administration, and grading
which is developed and graded by the AICPA. Grades are
of the Uniform CPA Examination to ensure the boards’
released to candidates through the state boards. The exam-
requirements are met.
ination as given in May 2000, for example, was a four- Many states call for CPAs to give evidence of “good
part test given over a two-day period. The four sections of moral character.” This has been interpreted to mean hav-
the examination were: auditing (AUDIT), business law
ing knowledge of professional ethics as well as having no
and professional responsibilities (LPR), financial account-
criminal record that could be related to practicing
ing and reporting—business enterprises (FARE), and accounting. NASBA’s ethics committee and administra-
accounting and reporting—other areas (ARE).
tors committee both are concerned with these issues.
In November 1997, 20.8 percent of the candidates
Committees on public perception, strategic initia-
passed all parts of the exam for which they sat. This does
tives, new horizons, and so forth demonstrate the associa-
not mean they passed the entire examination, since some tion’s continuing concern with keeping in touch with the
candidates retake the examination and consequently only public’s and the profession’s expectations and goals. Infor-
take selected parts. In a few jurisdictions, candidates can
mation about NASBA is available from NASBA at 150
choose to take only a limited number of parts at a time.
Fourth Avenue North, Suite 700, Nashville, TN 37219-
Studies are being conducted to transform the Uniform 2417; (615) 880-4200; or www.nasba.org.
CPA Examination into a computer-based examination
rather than paper-and-pencil test. Such a transformation Licensed public accountants and public accountants
are also recognized in a limited number of jurisdictions.
would shorten the time needed to complete the examina-
tion and enable candidates to take the examination on SEE ALSO American Institute of Certified Public Accoun-
additional dates. tants; State Societies of CPAs
Experience is another requirement carefully defined
in each state’s accountancy rules. At one time only audit-
Louise Dratler Haberman
ing experience in public accounting firms was acceptable.
In many states, work in government, industry, and acade-
mia that leads to professional competence is also being
accepted.
NATIONAL BUSINESS
EDUCATION
CONTINUING COMPETENCE
Continuing professional education (CPE) is mandatory ASSOCIATION
for license renewal in all jurisdictions except Wisconsin. The National Business Education Association (NBEA) is
Some states have course requirements in auditing and an organization whose efforts are focused on all major
accounting, others have course requirements in ethics, aspects of business instruction, administration, and
and still others allow licensees to select courses to meet research. A primary focus of the NBEA is the recognition
CPE requirements. With more than half of CPAs now not that specific competency attainment is essential for suc-
working as public accountants, pressure exists for enlarg- cess and lifelong learning in a business environment. The
ing the scope of CPE to encompass a broader range of NBEA provides an important and essential link between

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 535