Board member reports NASBA annual meeting: CPE, alternative practice structures and deregulation risks on agenda
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Summary
A Connecticut board member who serves as a NASBA regional director briefed the board on national discussions about CPE, alternative practice structures and deregulatory risks stemming from last week’s NASBA annual meeting.
A Connecticut board member reported key takeaways from the National Association of State Boards of Accountancy (NASBA) annual meeting in Chicago during the board’s Nov. 4 meeting.
The NASBA meeting covered several topics the board identified as relevant to state regulation. NASBA and the American Institute of CPAs have agreed to form a task force to reexamine continuing professional education (CPE) requirements, including the common U.S. standard of 40 hours per year (or equivalent) and whether the current approach adequately addresses public-protection needs. The board member noted that some states — named in discussion as California, North Carolina, Virginia, Ohio and Kentucky — have begun reviewing whether the annual 40-hour standard remains appropriate.
NASBA also commissioned an independent diagnostic to evaluate organization strategy and stakeholder engagement after a recent leadership transition; the diagnostic involved interviews across state boards and NASBA stakeholders and will feed a strategic planning process. The reporting board member has been invited to serve on NASBA’s strategic planning committee.
Another major topic was alternative practice structures (APS). NASBA produced a white paper identifying three core areas for state consideration: (1) independence and professional standards, (2) disclosure and public understanding of firm structures and titles, and (3) regulatory oversight and enforcement. NASBA asked state boards to provide comment; the board member suggested placing the white paper on the January agenda so Connecticut board members can decide whether to respond before the Jan. 31 comment deadline.
Finally, NASBA briefed state boards on a continuing risk of deregulatory bills in some states that could eliminate board authority or CPE requirements. The speaker said NASBA has prepared a “deregulation toolkit” to help state boards proactively educate legislators about the importance of state oversight.
Board members discussed quality versus quantity for CPE — not only how many hours are required but whether there are ways to better assure the relevance and rigor of continuing education — and expressed interest in monitoring NASBA taskforce outputs and the APS white paper.
