Frequently Asked Questions on the Proposed Bylaw Amendment
July 6, 2010
- Why is this bylaw amendment being proposed for a member vote?
- Would individuals seeking membership under the proposal be required to have passed the CPA examination?
- What are the requirements for the proposed voting member categories vs. current requirements?
- What is the UAA and why was it selected as the reference?
- Why would anyone meet the high standards of UAA and not be certified/licensed?
- Does this affect the requirements to become a CPA?
- Could members admitted under the proposal hold themselves out as CPAs?
- Can these new voting members be on committees/serve on the Board of Directors, etc.?
- If a member had not yet renewed their dues as of July 31, can they still vote on the bylaw proposal?
- Wouldn’t the AICPA membership then have people who do not have a current CPA certificate?
- If the AICPA had members who were not CPAs, wouldn't that devalue the CPA and the AICPA?
- If someone's CPA certificate was revoked by a state board of accountancy for failing to register with the state board, or for any other disciplinary action, can that person become an AICPA member?
- Will the AICPA be checking the membership applications for these new members?
- How many members need to vote for the bylaw amendment for the proposal to pass?
- When would we know the results?
- How can I get more information so I can make an educated decision?
Why is this bylaw amendment being proposed for a member vote?
The demographics of the profession have changed over the last 50 years from one of virtually 100% public accounting to one that is equally divided between public accounting and accounting professionals in business, industry, nonprofits, academia and government. The membership requirements have not kept up with these changes. Members in business, industry, government and education may not be required to obtain or maintain a certificate/license for services they provide to their employers and they do not hold out to the public as a CPA.
The non-public segment of the profession is a key component in meeting the expectations of public trust. They are partners in the financial reporting chain, preparing the financial statements and information that the public practice sector audits and that serve capital markets. It’s important that they have access to the same kinds of resources and professional networks as public practice members.
Would individuals seeking membership under the proposal be required to have passed the CPA examination?
Yes. The proposal does not change the requirement that to be eligible to become a regular voting member an individual must pass the CPA examination.
What are the requirements for the proposed voting member categories vs. current requirements?
| Category | Education1 | Passed CPA Examination | Experience2 | CPE Required for Membership | Adherence to Code of Conduct | Ability to "Hold Out" as a CPA3 |
| Current Voting Members | Varies depending on state requirements | Yes | Varies depending on state of certification/licensure | Yes | Yes | Allowed if holding a current license which may be a CPA certificate |
| Proposed: Individuals who at any time possessed a CPA certificate and whose certificate was not revoked as a result of disciplinary action | Varies depending on state requirements | Yes | Varies depending on state of certification/licensure | Yes | Yes | None |
| Proposed: Individuals meeting UAA requirements | 150 hours as defined by UAA | Yes | One year of experience as defined by UAA | Yes | Yes | None |
1 Because AICPA membership spans some 50-70 years, the education requirements applicable to voting members range from Associate degrees through to 150 hours.
2 Some state boards have required two years of experience; a few others have a public practice experience component to their experience requirements; currently 43 states have a one year experience requirement.
3 "Holding out" means the use of the title "CPA," "certified public accountant" or other protected titles. The ability to "hold out" as a CPA is controlled by the states through licensure and rules provisions. Generally a license (which in some states is the CPA certificate) is required when an individual "holds out" as a CPA offering services to third parties.
What is the UAA and why was it selected as the reference?
The Uniform Accountancy Act (UAA) is approved by the National Association of State Boards of Accountancy (NASBA) and the AICPA and is the national model for state legislation to regulate the CPA profession. It has been a primary tool in the ability of the AICPA and state CPA societies to achieve mobility in 47 states over the past three years. As a national membership organization, the AICPA needs to provide equal opportunity to those who meet agreed-upon national standards. The UAA provides that uniformity.
Why would anyone meet the high standards of UAA and not be certified/licensed?
A common roadblock in certification/licensure is obtaining specific types of experience. Currently, 43 states have one-year experience requirements. However, some states still have a two-year experience requirement and others may contain provisions for public accounting (audit) experience, which is virtually impossible to obtain if the individual is employed in business, industry, government or education. There also are significant expenses involved in certification/licensure – some fees run $400+. When a certificate/license is not required as a condition of employment, those expenses can be a significant financial burden simply to belong to a membership organization such as the AICPA.
Does this affect the requirements to become a CPA?
No. The amendment does not change the requirements to become a CPA, just the requirements to become a voting member of the AICPA.
Could members admitted under the proposal hold themselves out as CPAs?
The proposal does not change the prohibition on "holding out" as a CPA. The title and credential are generally controlled by state boards of accountancy. The proposed bylaw change would require that these voting members adhere to the Code of Conduct. Representing certification/licensure without a certificate/license would be a violation of the Code of Conduct (they cannot purport to be a CPA nor put CPA after their name).
Can these new voting members be on committees/serve on the Board of Directors, etc.?
A voting member could serve on AICPA committees provided that their background and experience met the needs of the volunteers being sought for committee service. In many cases, members in business, industry, government or education have unique experience and insights that can prove to be very enlightening and useful in committee deliberations. The bylaws require that any individual nominated to serve as chairman of the AICPA must have a valid and unrevoked CPA certificate; the president & CEO of the AICPA also is required to be a CPA.
If a member has not yet renewed their dues as of July 31, can they still vote on the bylaw proposal?
Yes. You are eligible to vote on the member ballot as long as you remain an active member, which generally is five months past the date that membership dues are due. The October 8 due date of the ballot is earlier than that.
Wouldn’t the AICPA membership then have people who do not have a current CPA certificate?
Our bylaws require someone to have a valid CPA certificate at the time of application. The bylaws do not specify that the CPA certificate must remain active after being granted membership.
If the AICPA had members who were not CPAs, wouldn't that devalue the CPA and the AICPA?
The essential change this bylaw brings is make eligible for AICPA membership people who have passed the CPA Exam, gained accounting experience and achieved 150 hours of education in accordance with the Uniform Accountancy Act, which is more education than the majority of current members, but go into a work setting where a CPA certificate is not required by their state board of accountancy. By joining the AICPA, that person commits to the same values, Code of Professional Conduct and ongoing continuing education requirements as all other members. As a result, we believe it strengthens those working in the accounting profession and the AICPA membership.
If someone’s CPA certificate was revoked by a state board of accountancy for failing to register with the state board, or for any other disciplinary action, can that person become an AICPA member?
No. The proposal states that the CPA certificate could not have been revoked as a result of a disciplinary action.
Will the AICPA be checking the membership applications for these new members?
Yes. Those who have lapsed CPA certificates must provide the certificate number, state, date of issuance and date of expiration. Those applying under the UAA provision must submit documentation that they meet the education, examination and experience requirements and that documentation will be verified before membership is granted.
How many members need to vote for the bylaw amendment for the proposal to pass?
There is no required minimum for the number of votes. For a proposed bylaw amendment to pass, two-thirds of the members who cast a ballot need to vote "yes."
When would we know the results?
The results of the ballot will be available to the AICPA on October 19 and so members will be alerted shortly after that through the AICPA News Update e-newsletter, CPA Letter Daily and other communications.
How can I get more information so I can make an educated decision?
Our website has a dedicated page on the member ballot at www.aicpa.org/ballot. There you’ll find numerous resources, including a backgrounder, the Chair’s Letter and a video on his views, videos of AICPA leadership explaining the ballot measure, videos of members' opinions on the proposal, a summary of members' views both in favor and against the ballot and more. Questions about the ballot should be sent to AICPAballot@aicpa.org.
