Page 718 - Encyclopedia of Business and Finance

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State Societies of CPAs

join; often joint meetings/functions are held with other The AICPA provides resources for CPAs and assists
state professionals, such as lawyers, bankers, or educators. state societies with problems or initiatives. The AICPA has
responsibility for producing and grading the computer-
based Uniform CPA Examination, while the state’s board
EDUCATION
of accountancy is responsible for the distribution of exam-
In many states, practicing CPAs are required to complete
inations to those who registered in their respective states.
continuing professional education (CPE) credits to main-
The AICPA serves as an advocate for the profession at the
tain their license. While licensing is the responsibility of national level. Laws that affect CPAs are monitored by the
the board of accountancy, state societies often offer a vari- AICPA as well as representatives from the states. The
ety of CPE courses. These courses are offered as seminars, AICPA publishes the monthly Journal of Accountancy, and
online workshops, or through self-study videos and/or
maintains a large professional library. Several state soci-
workbooks.
eties also publish their own journals.
Sessions are frequently offered for the public. Topics
The AICPA maintains a code of professional conduct
include programs for the public, such as the Financial Lit-
for members’ ethical standards. Most state societies also
eracy project, whose goal is to help educate the public on implement this same code through the Joint Ethics
the use of information generated by accounting. Programs Enforcement Program. Members who fail to abide by the
are designed for students in secondary schools and col-
code may have their membership terminated and their
leges that inform students of the career opportunities and
name published. A member’s license, however, can be
requirements in public accounting.
revoked only by a state board of accountancy.
ADVOCACY AND PROMULGATION
PUBLIC COMPANY ACCOUNTING
OF PROFESSIONAL STANDARDS
OVERSIGHT BOARD
State societies monitor developments that are of interest In 2002 the Public Company Accounting Oversight
to their members in their respective state legislatures. Leg- Board (PCAOB) was established to oversee auditors of
islation affecting regulation of the profession, tax issues,
public companies as a result of the Sarbanes-Oxley Act of
and other assorted economic issues are of interest to
2002. Both the AICPA and state societies make informa-
CPAs. The response of the society may range from mak-
tion regarding the PCAOB available to their members.
ing members aware of proposed legislation to composing
a position paper to hiring lobbyists.
BOARDS OF ACCOUNTANCY
Each state has a board of accountancy responsible for
COMMITTEES
administering the Uniform CPA Examination, licensing
Some of the state society committees are common to
CPAs, and regulating the practice of public accountancy,
many states; others may be unique to a state or a region. generally through legislation. State regulations include
Some committees exist to provide a forum for discussion requirements for the CPA certificate and/or license and
among members with similar interests. Other committees rules governing CPE credits. State boards of accountancy
enable members to discuss important common topics are regulatory agencies with no direct ties to the AICPA or
such as peer reviews, changes or proposed changes in audit the state societies, although they frequently cooperate on
standards, or recent changes in tax law. Ethics committees projects that benefit the profession.
allow the society to provide a vehicle to hear complaints
The National Association of State Boards of Accoun-
regarding allegations of ethics violations by members. Still
tancy exists to enhance the effectiveness of the state boards
other committees plan social events or fund-raising activ-
of accountancy. It serves as a forum for the nation’s state
ities.
boards of accountancy and includes a member from each
state’s board of accountancy.
AICPA AND STATE SOCIETIES Although the state’s board of accountancy is inde-
The AICPA is a national professional society founded in pendent from the state’s society and the AICPA, they
1887. The majority of AICPA members (350,000 in often form joint task forces. Some examples of coopera-
2005) are licensed CPAs, with some limited specialty cat- tion include peer review and attempts to unify the
egories for non-CPAs. The AICPA and the state societies requirements among the states for becoming a CPA. Peer
are unaffiliated. CPAs can join the AICPA and/or their review is a method for relicensing mandated by a state’s
state society. Many members of state societies join the board of accountancy. These programs are often moni-
AICPA and some serve on committees at the national tored by the state society, an arrangement generally
level and participate in activities sponsored by the AICPA. accepted by the state board of accountancy.

ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 695