CPA Journal Online

AICPA AND NASBA JOIN FORCES ON REGULATION AND STRUCTURE OF THE PROFESSION

The AICPA and the National Association of State Boards of Accountancy, Inc. (NASBA) issued a joint press release on March 21, 1996, announcing the formation of a joint committee to study the existing regulatory structure for the accounting profession. The committee will be made up of 12 representatives, five each from the AICPA and NASBA and two executive directors of state CPA societies. Barry Melancon, president of the AICPA and a member of the joint committee, in announcing the committee said: "We are pleased to combine our effort with NASBA's to study closely the current regulatory system and develop a shared vision for the future of the profession that will protect the public interest while enabling CPAs to better compete in a changing practice environment." NASBA president and CEO David A. Costello stated: "NASBA and its 54 member boards
of accountancy recognize the everchanging dynamics of the marketplace and the need to constantly review the adequacy of current regulatory structures. By studying the current regulatory structures and the needs of the market with the AICPA, we will be able to optimize our resources and, working with our 54 boards, enhance opportunities for successfully implementing any recommendations that are developed."

The joint committee is in addition to the work in the area of structure of the profession that is currently being done separately by the two organizations. The AICPA last year formed a special committee on the regulation and structure of the profession under the chairmanship of Curt Mingle of Clifton, Gunderson & Co., in Peoria, Illinois. Mingle joins AICPA chair Ronald S. Cohen, vice chair Robert Mednick, president Melancon, and director Kathy G. Eddy on the joint committee. Presumably the work of the joint committee will benefit from the work to date of the special committee and lead to a unified response. The work of the joint committee is expected to lead to the issuance of a report in time for the annual meetings of both organizations scheduled for October of this year.

NASBA has also had committees studying the issue of structure and regulation: its Long-Term Strategic Planning Committee and its Future Licensing, Litigation, and Legislation Committee.

The formation of the joint committee seems to be a direct result of concerns of NASBA that the AICPA special committee was considering widespread regulatory reform without the benefit of NASBA input. In addition a recent article appearing in The Journal of Accountancy by AICPA vice chair Robert Mednick proposed a new regulatory model which would include an AICPA sponsored national accreditation of individual CPAs.

Representing NASBA on the joint committee are Costello, chairman Ronnie Rudd, vice chair John M. Greene, director Sarah Blake, and Texas State Board of Accountancy executive director William Tracy. The two executive directors of state CPA societies are Don Weldon of Texas and Brad Floyd of Tennessee. These two are president and president-elect of the CPA Society of Executives Association. *

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