I am a member of the American Institute of Certified Public Accountants (AICPA). If you are a member you have most likely received your ballot in the mail to vote on the new amendment to the Institute's bylaws regarding membership. I encourage you to vote and return the ballot no matter what your decision is. I have sent in my ballot and this has been quite the discussion around my office as of late. With working in public accounting each CPA in my office has their thoughts on this subject. So what exactly does the amendment propose to change? You can read the full disclosure here. In a nutshell, the amendment would allow individuals meeting certain criteria that do not hold a valid CPA license to be full voting members of the Institute.
The criteria taken directly from the AICPA website is as follows:
1. Possess a valid and unrevoked CPA certificate issued by a legally constituted authority, the present requirement for membership.
2. At any time possessed a valid CPA certificate and the certificate was not revoked as a result of a disciplinary action (i.e., the certificate holder allowed the certificate to lapse because they were not providing public accounting services and therefore the certificate was not required by their state board of accountancy).
3. Fulfill the education, examination and experience requirements of the Uniform Accountancy Act (UAA) for CPA certification (see Appendix B) and are of good moral character but have never been granted a right to practice because they do not hold out as CPAs.
The third item is highlighted because it is what is causing the division among the current membership. One person equated it to a physician that has attended medical school, passed the boards, is of good moral character, but never bothered to obtain a license or let it lapse. Should this individual be allowed membership into the American College of Physicians? Maybe it should be phrased this way, would you choose a physician for your medical care who did not hold a valid license to practice medicine?
Many ask why the AICPA board would approve this amendment. The first possible answer is an increase in revenue from additional member dues. A second possibility could be that the membership as it stands now excludes those that have passed the exam but do not have a license and that is not playing nice. We don't want to show favoritism do we? This falls under the same idea that every child sports team should win a trophy even if they come in last place because they played.
Wait, stop right there. Seriously, this is one thing I do not understand. Why would anyone go through the enormous task of taking the CPA exam and pass and then not do the easy part and obtain a license? I do not understand that concept at all, but there must be some of you out there. If you fit into that category and are reading this please write a comment and explain your thought process to me.
An additional sore spot for current members opposed to this amendment is that in order to maintain an active CPA license a required amount of continuing education credit hours is mandatory. For the State of Maryland the State Board of Accountancy requires eighty hours of CPE every two years in order to renew your license. Those without a valid license are not subject to this requirement. Not only is the CPE a scheduling issue at times due to billable client work but it is not cheap. The average cost for eight hours of training is approximately $300.00. The positive note is that the CPE requirement does keep us informed and refreshed.
What do I suggest? Possibly a compromise in which individuals who do not possess a valid CPA license are admitted as associate members. In this case access to resources and support could be obtained but these members would not have voting rights. Why do I feel this way? The AICPA is a membership organization for CPA's. Possibly if the amendment is passed the name of the Institute should be changed to the American Institute of Accounting Professionals (AIAP).
As CPA's our fiduciary duty is to the public. The public places trust in us to act and perform our responsibilities in a manner to which a prudent individual would find appropriate. Upon attaining a license you agree to abide by the code of conduct established by the AICPA. I do not feel having a membership organization for valid CPA license holders which is exclusive is a negative thing. In my opinion it adds merit to the organization as a whole.
As this is a touchy issue among the profession I welcome your comments and thoughts.
The criteria taken directly from the AICPA website is as follows:
1. Possess a valid and unrevoked CPA certificate issued by a legally constituted authority, the present requirement for membership.
2. At any time possessed a valid CPA certificate and the certificate was not revoked as a result of a disciplinary action (i.e., the certificate holder allowed the certificate to lapse because they were not providing public accounting services and therefore the certificate was not required by their state board of accountancy).
3. Fulfill the education, examination and experience requirements of the Uniform Accountancy Act (UAA) for CPA certification (see Appendix B) and are of good moral character but have never been granted a right to practice because they do not hold out as CPAs.
The third item is highlighted because it is what is causing the division among the current membership. One person equated it to a physician that has attended medical school, passed the boards, is of good moral character, but never bothered to obtain a license or let it lapse. Should this individual be allowed membership into the American College of Physicians? Maybe it should be phrased this way, would you choose a physician for your medical care who did not hold a valid license to practice medicine?
Many ask why the AICPA board would approve this amendment. The first possible answer is an increase in revenue from additional member dues. A second possibility could be that the membership as it stands now excludes those that have passed the exam but do not have a license and that is not playing nice. We don't want to show favoritism do we? This falls under the same idea that every child sports team should win a trophy even if they come in last place because they played.
Wait, stop right there. Seriously, this is one thing I do not understand. Why would anyone go through the enormous task of taking the CPA exam and pass and then not do the easy part and obtain a license? I do not understand that concept at all, but there must be some of you out there. If you fit into that category and are reading this please write a comment and explain your thought process to me.
An additional sore spot for current members opposed to this amendment is that in order to maintain an active CPA license a required amount of continuing education credit hours is mandatory. For the State of Maryland the State Board of Accountancy requires eighty hours of CPE every two years in order to renew your license. Those without a valid license are not subject to this requirement. Not only is the CPE a scheduling issue at times due to billable client work but it is not cheap. The average cost for eight hours of training is approximately $300.00. The positive note is that the CPE requirement does keep us informed and refreshed.
What do I suggest? Possibly a compromise in which individuals who do not possess a valid CPA license are admitted as associate members. In this case access to resources and support could be obtained but these members would not have voting rights. Why do I feel this way? The AICPA is a membership organization for CPA's. Possibly if the amendment is passed the name of the Institute should be changed to the American Institute of Accounting Professionals (AIAP).
As CPA's our fiduciary duty is to the public. The public places trust in us to act and perform our responsibilities in a manner to which a prudent individual would find appropriate. Upon attaining a license you agree to abide by the code of conduct established by the AICPA. I do not feel having a membership organization for valid CPA license holders which is exclusive is a negative thing. In my opinion it adds merit to the organization as a whole.
As this is a touchy issue among the profession I welcome your comments and thoughts.
Even though CPE is considedred as a pain point by a lot of CPAs, I believe its a great resource through which CPAs stay up to date with the new regulations in the state/industry.
ReplyDeleteCPE should be taken positively as the end of the day without fulfilling the CPE requirement, CPAs cannot maintain their license.
I agree with you--I finally got around to reading this ballot issue this weekend and have been surfing for some "con" commentary other than the AICPA propaganda included with the ballot.
ReplyDeletePeople should not be able to list "Member, AICPA" on their resume if they are not or have not been a CPA. This clearly misleads readers into thinking "well they must be a CPA then..." The CPE requirements we must adhere to are no small effort, and are part of the hallmark of our profession and the CPA title.
This seems to me to be part of the general trend of cheapening the professions--accountants, attorneys, engineers, architects, etc. People who have had to complete a rigorous education and submit to specific technical examination should have the right to call themselves a "professional." Now we have "financial professionals," "real estate professionals," and "customer service professionals." We don't need to add to this decline by creating "accounting professionals."
I feel we need to hold the line on admission to our professional body. We earned it. It is OUR professional society. It is not a club for people with a Masters degree in accounting who haven't been to a CPE class in 10 years. Perhaps we should attempt to encourage more of these non-CPAs that the AICPA seems so concerned about to actually become CPAs. Problem solved and case closed.
This cheapens our profession, and I stand opposed. The AICPA can look for more dues money elsewhere.
Being a member of AICPA, you will be receiving benefits from it. However, maintaining CPA license is important.
ReplyDeleteThanks for sharing this very informative post!
This would be great even the student can avile for the membership of AICPA. Thanks
ReplyDeleteAside from the interactive courses given by most online providers, CPE for CPAs certification courses also features preparatory exams, training materials as well as Instructor-connect program where you can interact with an online teacher to guide you and successfully pass the exam.
ReplyDelete