State Societies of Cpas

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Independent professional societies for certified public accountants (CPAs) exist in each of the fifty states as well as in Washington, D.C., Puerto Rico, the Virgin Islands, and Guam. CPAs may choose to join their state's professional organization, generally known as (state's name) Society of CPAs or (state's name) Association of CPAs. These organizations consist of CPAs in public practice, in education, and in government and industry. In the larger states, the state societies are divided into chapters by geographic location. The relationships between the state societies and the national organization, the American Institute of Certified Public Accountants (AICPA), and also between the state societies and the state and national Boards of Accountancy, are also examined in this article.

The societies collect dues and are run by full time and/or part-time staff as well as a board of directors with officers elected from the member-ship. State societies have executive directors; these executive directors belong to an association that maintains an informative Web site: (http://www.cpasea.org). This site has profiles of each of the state societies, including information about their dues, membership, and publications.

State societies sponsor education programs and provide resources for their members as well as opportunities to network with other professionals. They represent the interests of the profession at the state legislative level and have an array of committees that their members can join. While some of the committees are common to most of the states, others may be unique to a state or a region.

Frequently state societies offer additional benefits to their members, such as access to insurance plans for professional liability, life, and health insurance. State society members often list "networking" as an important reason to join; frequently joint meetings/functions are held with other state professionals, such as lawyers, bankers, or educators.

In many states, practicing CPAs are required to complete continuing professional education (CPE) credits to maintain their license. While licensing is the responsibility of the Board of Accountancy, state societies often offer a variety of CPE courses, usually available to both members and nonmembers. These courses can be taken through attending seminars or through self-study videos and/or workbooks.

State societies monitor developments in their respective state legislatures that potentially can affect their members. Legislation regarding matters such as regulating the profession, tax issues, and economic issues important to CPAs and their clients is of interest to the members. Depending on the issue, the response of the society may range from making the members aware of pro posed legislation, to composing a position paper on a certain issue, to hiring lobbyists to be certain the views of the membership are heard.

Some state society committees exist to provide a forum for discussion among members with special interests, such as members in public practice, in business and industry, in government, or in education. Other committees enable members to discuss important topics such as peer reviews, changes or proposed changes in audit standards, or recent changes in tax law. Still others plan social events or fund-raising activities.

The American Institute of Certified Public Accountants (AICPA) is a national professional society founded in 1887. It is a membership organization, as are the 54 state societies. As of 1999, AICPA membership numbered 328,000. AICPA members are licensed CPAs, with some limited specialty categories for non-CPA members. The AICPA and the state societies are unaffiliated. CPAs can join the AICPA and/or their state society. Members of state societies often serve on committees at the national level and use the services of the AICPA.

The AICPA employs a variety of professionals who serve as resources for CPAs and assist state societies with problems or initiatives. The AICPA promulgates accounting standards and is responsible for producing the uniform CPA exam. The exam is currently given in May and November in each of the states. Each state's Board of Accountancy is responsible for exam results. The AICPA serves as an advocate for the profession at the national level. Laws that affect CPAs are monitored by employees of the AICPA as well as representatives from the states. The AICPA publishes the monthly Journal of Accountancy, a widely read periodical with articles on timely topics affecting CPAs, and maintains a large professional library. Their website (http://www.aicpa.org) contains a wealth of information about the organization as well as the profession.

The AICPA has a Code of Professional Conduct that holds members to certain ethical standards. Most state societies implement the code through a Joint Ethics Enforcement Program. Members who fail to abide by the code may have their membership terminated and their name published. A member's license, however, can only be revoked by a state Board of Accountancy.

Each state has a Board of Accountancy responsible for administering the uniform CPA examination within the state, licensing certified public accountants, and regulating the practice of public accountancy, generally through legislation. State regulations include the requirements for getting a CPA certificate and/or license and rules governing CPE credits—both the number of hours needed and the content areas. State Boards of Accountancy are regulatory agencies with no direct ties to the AICPA or the state societies, although they frequently cooperate on projects that benefit the profession.

The National Association of Boards of Accountancy (NASBA) exists to enhance the effectiveness of the state Boards of Accountancy. It serves as a forum for the nation's state Boards of Accountancy and includes a member from each state's Board of Accountancy. NASBA maintains an informative Web site (http://www.nasba.org).

Although the state's Board of Accountancy is independent of the state's society and the AICPA, they may form joint task forces. Some examples of cooperation include peer review and unifying the requirements for becoming a CPA. Peer review is a method for relicensing mandated by a state's Board of Accountancy. These programs are often monitored by the state society, an arrangement generally accepted by the state Board of Accountancy. Also, an attempt to unify the accountancy laws in the various states has been proposed by NASBA with the AICPA's and several state societies' backing. This effort toward a Uniform Accountancy Act would streamline the regulations for becoming and remaining a CPA in the different states.

The state societies and the AICPA are professional organizations that CPAs may join. The state Boards of Accountancy are regulatory agencies. The organizations are independent, with each having a different function. Since the topic of state societies and their relationship to the AICPA and the Boards of Accountancy is not covered in texts or reference material, the best sources of further information are the websites mentioned in this article.

American Institute of Cpas; National Association of Boards of Accountancy)

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