Council approves non-CPA ownership, accreditation proposals.The American Institute of CPAs council at its spring meeting held May 23-25 in Phoenix approved proposals to allow non-CPA ownership of CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. firms under certain conditions and to accredit to attribute something to him; as, Mr. Clay was accredited with these views; they accredit him with a wise saying s>. See also: Accredit members who provide various CPA niche services. It also heard a report regarding the Institute's continuing professional education programs and passed a 1994-95 fiscal year budget. Non-CPA Ownership Council voted 144 to 58 in favor of a recommendation by the task force on non-CPA ownership to change Rule 505 of the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). Code of Professional Conduct to allow non-CPA employees to hold equity interests in CPA firms. The vote came after certain of the processes were strengthened. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the provisions, non-CPAs may own CPA firms only if * At least two-thirds of a firm's owners (in terms of financial interests and voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. ) are CPAs. Non-CPA owners must be actively engaged in providing services to firm clients as their principal occupation. Investors or commercial enterprises not actively engaged as firm members may not acquire equity stakes. Firms that don't comply with these requirements have three years to do so. * A CPA takes ultimate responsibility for all the services provided by the firm and for each business unit performing attest and compilation services and other engagements governed by AICPA statements on auditing standards Statements on Auditing Standards, commonly abbreviated as SAS, provide guidance to external auditors on generally accepted auditing standards (abbreviated as GAAS) in regards to auditing an entity and issuing a report. or statements on accounting and review services. (The term business unit applies to both geographic units, such as regional offices, and functional units, such as divisions in the same office that provide different services. * Non-CPA owners do not assume ultimate responsibility for any attest or compilation engagement. * New non-CPA owners possess a bachelor's degree and, beginning in the year 2010, meet the AICPA 150-hour education requirement. * Non-CPA owners do not hold themselves out as CPAs. Such owners may use the title principal, owner, officer, member, shareholder or any other title permitted by applicable state law. * Non-CPA owners abide by the AICPA Code of Professional Conduct. AICPA members may be held responsible under the code for all co-owners' acts. * Non-CPA owners complete the same work-related CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment requirements (set forth in section 2.3 of the AICPA bylaws The rules and regulations enacted by an association or a corporation to provide a framework for its operation and management. Bylaws may specify the qualifications, rights, and liabilities of membership, and the powers, duties, and grounds for the dissolution of an ) that AICPA members must fulfill. * Non-CPA owners at all times must own their equity in their own right and be the beneficial owners Beneficial Owner A person who enjoys the benefits of ownership even though title is in another name. Notes: For example, when shares of a mutual fund are held by a custodian bank or when securities are held by a broker in street name, the true owner is the beneficial of the equity capital ascribed to them. Provision must be made for the transfer of such ownership to the firm or to other qualified owners if a non-CPA ceases to be actively engaged in the firm. The provisions also bar non-CPA owners from AICPA membership. Ronald Cohen For other uses, see Ronald Cohen (disambiguation). Sir Ronald Cohen (born 1945) is an Egyptian-born British businessman and political figure, known as "the father of British venture capital". , CPA, a partner of Crowe Chizek Crowe Chizek and Company LLC is a professional services firm, with offices throughout the eastern United States, including Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, New Jersey, Ohio, and Tennessee. in Indianapolis and chairman of the task force, emphasized that the rule change would have no immediate effect on most CPA firms, which are governed by state regulations. Currently, Nebraska CPA firms are the most affected, since that state recently lifted its prohibition against non-CPA ownership. Accreditation Council approved a proposal to standardize the requirements for members to obtain and maintain certain credentials. The resolution abolished the AICPA specialization accreditation board and mandated that any accreditation programs approved by the AICPA board of directors be submitted to council for final approval. Under the new approach * All new credentials offered by the AICPA will require members to accumulate 450 hours of relevant experience in the three-year period before they take the appropriate examination. To retain their credentials, members must have 600 hours' experience in the designated area and at least 60 hours of related CPE in each successive three-year period following the credential's award. * Proponents of a new credential must develop a business plan that demonstrates the new credential will be self-supporting within three years of implementation. The business plan must provide clear evidence of members' demand and include the names of at least 100 members who have committed to take the first related examination. * After a specialty program is approved, the board of directors will support the program by establishing a separate committee and budget, if needed. The resolution also directed the board of directors to monitor all credential programs to ensure their continued financial viability. Continuing Professional Education Immediate past AICPA board chairman Jake Netterville, a partner of Postlethwaite & Netterville in Baton Rouge, Louisiana For the Canadian restaurant, see . Baton Rouge (from the French bâton rouge), pronounced /ˈbætn ˈɹuːʒ/ in English, and , reported that a proposal to create an Alliance for Learning, which would have coordinated AICPA and state CPA society CPE programs, had been modified. Instead, a policymaking pol·i·cy·mak·ing or pol·i·cy-mak·ing n. High-level development of policy, especially official government policy. adj. Of, relating to, or involving the making of high-level policy: group reporting directly to the board of directors--a seven-member CPE board of management--will replace the existing CPE executive committee. The board will be supplemented by two ex-officio members An ex-officio member was a member of a colonial legislative council or an executive council. They were civil servants who served in a colonial government, appointed to sit in a council or both councils alongside with unofficial members. , the AICPA finance committee chairman and the vice-chairman of the AICPA board of directors, and will oversee CPE operations. Former AICPA board chairman Marvin Strait will serve as the board's chairman. Budget Approval Council also approved a 1994-95 budget that provides for excess revenue of $3 million after giving effect to a 5% dues increase. This is part of a longer term program to bring the Institute's fund balance to 20% to 25% of the annual budget over several years. |
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