STATE SOCIETIES OF CPAS

Independent professional societies for certified public accountants (CPAs) exist in each of the fifty U.S. states and 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. Such societies provide CPAs with common interests and goals a wide range of professional activities. The societies are also avenues for members to become leaders in their profession. 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 discussed briefly in this entry.

The societies are run by full-time and/or part-time staff as well as a board of directors, with officers elected from the membership. State societies have executive directors and finance their operations primarily through membership dues.

SERVICES

State societies sponsor education programs and provide resources for members and opportunities for them to network with other professionals. They represent the interests of the profession at the state legislative level and have an array of committees that members can join. The societies provide publications for members and nonmembers, and frequently sponsor public education sessions.

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; often joint meetings/functions are held with other state professionals, such as lawyers, bankers, or educators.

EDUCATION

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. These courses are offered as seminars, online workshops, or through self-study videos and/or workbooks.

Sessions are frequently offered for the public. Topics include programs for the public, such as the Financial Literacy project, whose goal is to help educate the public on the use of information generated by accounting. Programs are designed for students in secondary schools and colleges that inform students of the career opportunities and requirements in public accounting.

ADVOCACY AND PROMULGATION OF PROFESSIONAL STANDARDS

State societies monitor developments that are of interest to their members in their respective state legislatures. Legislation affecting regulation of the profession, tax issues, and other assorted economic issues are of interest to CPAs. The response of the society may range from making members aware of proposed legislation to composing a position paper to hiring lobbyists.

COMMITTEES

Some of the state society committees are common to many states; others may be unique to a state or a region. Some committees exist to provide a forum for discussion among members with similar interests. Other committees enable members to discuss important common topics such as peer reviews, changes or proposed changes in audit standards, or recent changes in tax law. Ethics committees allow the society to provide a vehicle to hear complaints regarding allegations of ethics violations by members. Still other committees plan social events or fund-raising activities.

AICPA AND STATE SOCIETIES

The AICPA is a national professional society founded in 1887. The majority of AICPA members (350,000 in 2005) are licensed CPAs, with some limited specialty categories for non-CPAs. The AICPA and the state societies are unaffiliated. CPAs can join the AICPA and/or their state society. Many members of state societies join the AICPA and some serve on committees at the national level and participate in activities sponsored by the AICPA.

The AICPA provides resources for CPAs and assists state societies with problems or initiatives. The AICPA has responsibility for producing and grading the computer-based Uniform CPA Examination, while the state's board of accountancy is responsible for the distribution of examinations to those who registered in their respective states. The AICPA serves as an advocate for the profession at the national level. Laws that affect CPAs are monitored by the AICPA as well as representatives from the states. The AICPA publishes the monthly Journal of Accountancy, and maintains a large professional library. Several state societies also publish their own journals.

The AICPA maintains a code of professional conduct for members' ethical standards. Most state societies also implement this same code through the 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 be revoked only by a state board of accountancy.

PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD

In 2002 the Public Company Accounting Oversight Board (PCAOB) was established to oversee auditors of public companies as a result of the Sarbanes-Oxley Act of 2002. Both the AICPA and state societies make information regarding the PCAOB available to their members.

BOARDS OF ACCOUNTANCY

Each state has a board of accountancy responsible for administering the Uniform CPA Examination, licensing CPAs, and regulating the practice of public accountancy, generally through legislation. State regulations include requirements for the CPA certificate and/or license and rules governing CPE credits. 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 State Boards of Accountancy 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.

Although the state's board of accountancy is independent from the state's society and the AICPA, they often form joint task forces. Some examples of cooperation include peer review and attempts to unify the requirements among the states 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.

CONCLUSION

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.

WEB SITES OF INTEREST

American Institute of Certified Public Accountants: http://www.aicpa.org

Public Company Accounting Oversight Board: http://www.pcaob.org

National Association of State Boards of Accountancy: http://www.nasba.org

see also American Institute of Certified Public Accountants ; National Association of State Boards of Accountancy ; Public Company Accounting Oversight Board ; Uniform Certified Public Accountant Examination

Kathleen Simons