Questions and Answers on Global Credential.

The following questions and answers were prepared to address members' comments and feedback regarding the global credential ("XYZ").

Why begin implementation of the XYZ with the CPA profession rather than the legal or any other profession?

Because we have the vision, and because if we're correct and there is a market opportunity, our members will have the early opportunity to participate.

The XYZ is an idea that grows directly out of the CPA Vision Process and about which the Institute's Strategic Planning Committee and other accountancy institutes around the globe have expressed their excitement. If the CPA profession takes the lead in developing the concept, the ground rules will be consistent with our frame of reference and culture.

What is the AICPA's motive in creating this new credential?

This initiative grew out of the Institute's Strategic Planning Committee looking for opportunities consistent with the Vision that would enable AICPA members to continue to excel in a very competitive marketplace. It is not, as some have suggested, an attempt to increase AICPA membership numbers. Rather, it is an effort to complement existing professional credentials by creating a new and distinct profession that emphasizes the strategic integration of knowledge needed to create value for businesses in today's evolving information economy.

Why is the AICPA exploring the feasibility of a new credential that would include non-CPAs and thereby augment competition for CPAs?

The AICPA is certainly not looking to create new sources of competition for the CPA. On the contrary, our job is to keep the CPA profession relevant and viable well into the next century. In that regard, the Institute is continuing to expand its aggressive efforts in image enhancement, student recruitment and membership services.

But CPAs, apart from their attest functions, are already in competition with other professions. Even when because of its unique attributes our CPA credential gives us an advantage in the marketplace, we have no exclusivity in most of what we do. That won't change once the XYZ has been established.

CPAs have already begun to accept the idea of collaborating with other professions in order to offer clients as wide a variety of services as possible. Many CPAs are now part of multidisciplinary practices, and CPA firms, large and small, are hiring non-CPAs. The XYZ credential would be a way to validate that everyone in a firm has a certain level of multidisciplinary, global experiences, skills and competencies that are subject to standards of ethics, continuing learning and assessment.

Likewise, many state CPA societies have allowed or are considering allowing non-CPAs to become members, and the honorary student society, Beta Alpha Psi, has changed its bylaws to include finance and information systems majors in addition to those enrolled in accountancy programs.

Is "Cognitor" the final term for the new credential?

We are aware that some individuals are concerned about the proposed name, Cognitor, which emerged from preliminary research conducted by national branding experts. At this point, however, the terms "Cognitor" and "XYZ" are both being used as placeholders to describe the new global business credential. A final name selection will be made after thorough market testing.

We know that any name assigned to the new credential is not going to be liked uniformly by all CPAs. This phenomenon is common in the branding arena. Keep in mind that names like Xerox, Exxon and Yahoo all sounded strange at the time of their introductions, too.

At this point, we are hoping members will focus on the concept of the new professional credential rather than on its name.

I am so busy trying to keep up with the standards imposed on me, plus trying to make a living, that it's difficult to focus on this new XYZ credential. Is it really going to make a difference to me personally?

The XYZ will not add any additional standards or regulatory requirements on CPAs.

We are keenly aware that there are a lot of CPAs who are justifiably preoccupied with more immediate business concerns. It is the Institute's obligation not only to help members address those concerns, but also to bring forward new opportunities for them to assess. We are working to ensure that members understand this new credential so they can determine for themselves whether it is something they want the AICPA to pursue and whether it may have value in their own professional lives sometime in the future.