In the News: Preparing for the CPA Exam is Now Easier

The AICPA has recently taken steps to make preparing for the Uniform CPA Exam easier for international students and candidates on the go with two exciting new developments.

Recently, the AICPA announced it had expanded its website, ThisWaytoCPA.com to students overseas who may now register and create profiles.

The website, designed to educate college students and CPA-exam candidates about the path to becoming a CPA, now contains information to help international students understand the process of registering for the CPA exam and becoming a U.S. CPA while living overseas.

AICPA Tells Congress to Keep Oversight of Investment Advisers with SEC

As the AICPA gears up for our 125th Anniversary next week, here’s a wrap up of a few interesting accounting topics recently making the news. You can follow @AICPANews on Twitter to stay on top of all the latest official AICPA news as well as articles impacting the profession.

CFO.com wrote that the AICPA raised concerns over the Investment Adviser Oversight Act of 2012 and urged Congress to keep oversight of investment advisers with the SEC. Introduced in the House of Representatives on April 25, the bill would transfer oversight of investment advisers from the SEC to a self-regulatory organization."Many of our members work for a firm that is registered as, or affiliated with, a registered investment adviser," Barry Melancon, CPA, CGMA, AICPA president and CEO, said in a statement. The AICPA's stance is that the system proposed under the bill would cost advisers much more in fees than current SEC oversight would.

On January 19, 2011, the SEC issued a staff report that found the current SEC-registered investment-adviser examination program faces hefty capacity and funding challenges. Three options were proposed to offset these challenges.  One would be to impose "user fees" on SEC-registered investment advisers to fund oversight. A second would authorize one or more SROs to examine investment advisers, with oversight from the SEC. A third choice would be to authorize the Financial Industry Regulatory Authority, a leading broker-dealer SRO, to examine dual registrants for compliance with the Investment Advisers Act of 1940. All three options require congressional action. "We believe that the SEC's core mission to protect investors requires adequate regulation of the investment advisory profession. The SEC remains the proper regulatory body to protect the public's best interest." Melancon said, "Providing the SEC with resources to properly enforce their rules is the best solution for investors and the public."

In the News: Accounting named one of the Happiest Jobs in America

We’ve got a lot of big things on the horizon at the AICPA: April Financial Literacy Month (we’ll be releasing survey results on the financial state of Americans) and in mid-May, we’ll be celebrating the 125^th Anniversary of the AICPA at our Spring Council meeting in Washington D.C.

Which is not to say that we’ve haven’t been busy lately! Just in the last week we released the results of our CGMA Global Economic Forecast and Barry Melancon, CPA, CGMA, president and CEO of the AICPA, testified before the House Capital Markets Subcommittee Accounting and Auditing Oversight Hearing. Melancon told members of the subcommittee that AICPA supports a strong, balanced and independent regulatory structure that protects investors but does not restrict the flow of capital.

During busy season and year-round, you can keep abreast of all the most important AICPA news by subscribing to the Media Relations RSS feed or following @AICPANews on Twitter. On to news of note from the last few days.

3 Tips for Opening the Doors to Future Leaders

As we celebrate National Women’s History Month, CPAs can take pride in knowing that women have maintained a solid foothold in the profession since the early 1980s. Not only that, women have represented half of all accounting undergraduate and graduate students since the early 1990s. Men and women share credit for opening the doors of the profession to ensure that all top talent can enter and thrive. However, there is one place where the numbers are still skewed male: at the partner level in CPA firms. One goal of the AICPA Women’s Initiatives Executive Committee is to call attention to this issue and offer solutions to firms and professionals on why and how to drive change.

February is Black History Month

Each year during February, children across the U.S. are taught that there was a time, in our not so distant past, when whole populations of Americans were excluded from enjoying basic human rights because of the color of their skin. Last year, three CPA Legends, Nathan Garrett, Sr., Aurora Rubin and Jim White were asked to speak about their life experiences as CPAs and the challenges, triumphs and changes that have occurred in accounting. What is their common experience? They were among very few CPAs of color at the time they entered the profession.

Nathan Garrett

In the News: Accounting Graduates Earn 20% More than Average

The National Association of Colleges and Employers recently released the findings of their latest Job Outlook survey, which contained good news for current accounting students as well as recent accounting graduates. According to the survey, accounting majors who graduated in 2011 earned an average starting salary of $50,500, up 3.7 percent from the previous year and roughly 20 percent more than the average starting salary of all graduates. This increase isn’t an anomaly, according to Andrea Koncz of NACE, who told FINS.com that "entry-level accounting and finance jobs tend to see steady growth from year to year."

In the News: Year-end Tax Planning, Changes to Offshore Accounts

A December 10 Wall Street Journal article titled What’s Next for Offshore Accounts detailed new rules affecting 2011 tax returns. These rules will require taxpayers with assets held offshore to make extensive disclosures to the Internal Revenue Service or risk harsh penalties. The article included a table (click to expand) provided by AICPA indicating which accounts and assets should be disclosed on the new Form 8938, Statement of Specified Foreign Financial Assets, and/or on Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). 

In the News: AICPA Provides Minority Accounting Scholarships, IFRS Decision Delayed

Deanna White of AccountingWEB recently spoke to Theresa Yeboah, a Georgia State University student who was awarded the scholarship three consecutive years, about the impact the AICPA’s Minority Accounting Scholarship has had on her education, as well as her plans for the future. "I have benefited tremendously from the scholarship," said Yeboah. "The scholarship helped me to pay for school and my expenses so I did not have to work so much and could focus my attention on my studies and activities, like Beta Alpha Psi. It gave me more time to devote to my dream of becoming a CPA."  This fall, Yeboah was one of 78accounting students from 36 states across the country awarded the AICPA Scholarship for Minority Students. Recipients are selected based on academic achievement, a demonstration of leadership and volunteerism, and an overall commitment to becoming a CPA. The 2012-13 Minority Scholarship application deadline is April 1, 2012.

 

Social Media and Job Seekers

Dear Smarty Pants, Braggarts and Potty-Mouths… A word to the wise: you never know who is listening.

I am often taken aback by the things I see people posting on social media. I understand the need to vent or an attempt to be funny, but what you put out there in the public domain could be costing you your career. In a recent survey, 95% of employers said they use social media to screen potential employees. Yes, 95%! Yikes. From inappropriate photos and comments about previous employers to proof an applicant was less than truthful about qualifications… employers are getting an eye full!

Still Not Convinced Accounting is the Way to Go?

Last week, in his Nov. 2 CPA Success blog post, How to choose a major: Step 1 -- pick accounting. QED, Bill Sheridan, CAE, electronic communications manager and editor at the Maryland Association of CPAs, affirmed that careers in accounting continue to buck trends and supply solid careers for young professionals. Sheridan said, “If you want a job in a profitable industry, study to become a CPA.” He went on to cite the latest data from Sageworks and the Bureau of Labor Statistics, which supports his point: the accounting profession is still sporting huge successes. It is expected to see further growth over the next six to seven years.

In the News: Accountant Named a Top Career for Women

More Magazine named ‘accountant’ as one of the top ten careers for women who wish to balance a career and a personal life. “Younger people are saying, ‘Yes, I want to telecommute or take a two-year sabbatical and come back where I left off’—and providing these options is helping employers attract and retain talent,” says Mary Bennett, a member of the AICPA. Beyond the possibility of work/life balance, the article noted that the CPA credential also provides the flexibility to work in a field you're passionate about and move among a wide range of industries, since businesses in all sectors need accountants.

In the News: US and HK sign MRA, Other CPA News

The Knoxville Daily Sun reported that the United States and Hong Kong have signed a five-year mutual recognition agreement establishing reciprocity between CPAs in the U.S. and Hong Kong. The agreement was signed at NASBA's 104th Annual Meeting in Nashville. "This new agreement will allow qualified accountants in the U.S. and Hong Kong to work across borders," said Barry Melancon, CPA, AICPA president and CEO. "Globalization is rapidly changing the way business is done across the globe and CPAs will continue to play a vital role in the financial systems in the U.S. and abroad." Mutual Recognition Agreements facilitate the process for qualified professionals with accounting credentials to become certified and licensed in each other's countries. The agreements are subject to individual state board of accountancy acceptance.

In the News: IRS Tax Preparer Fees

Patrick Temple-West at Reuters reports that the IRS is getting ready to impose the first comprehensive regulation of the industry's 730,000 practitioners who prepare tax returns. The IRS estimates the licensing fee for some tax preparers at between $250 and $275, which includes one-time fees to take a competency exam and be fingerprinted. (CPAs are exempt from the exam and fingerprint requirement and fees. For decades, CPAs and other credentialed preparers have been subject to state regulation as well as IRS rules for ethical practice and procedures, but many others were not.) The AICPA supports tax preparer regulation, but has expressed concern over the costs of requiring supervised non-signing staff at CPA firms to be fingerprinted "We have serious concerns regarding the level of burden that the user fee regulations will place on CPA firms, primarily small- and medium-size CPA firms," said Patricia Thompson, who chairs the AICPA Tax Executive Committee. The IRS, which plans to finalize the new fees in coming months, recently said it was open to ways to mitigate costs

Reflections on the AICPA’s Leadership Academy

Last week, I had the pleasure of attending the AICPA’s Leadership Academy—as a member of its third class—in Durham, NC. I was among 33 participants under the age of 36. The Academy started off like many seminars do in this mobile age, with participants glued to our smartphones and somewhat disconnected from our surroundings. But that disconnection would be short-lived.

The mood transitioned quickly to one of collaboration and engagement as the instructors—Gretchen Pisano, president Sounding Board Ink, LLC, Tom Hood, CPA, executive director and CEO of the Maryland Association of CPAs and Jeannie Patton, AICPA vice president - students, academics & membership—began the Insight to Action process. We broke up into three groups to tackle three challenging real-life scenarios in business, non-profit and personal relationships. These tasks forced us to focus on the strengths of our characters, utilizing the i2A Strength Based Leadership program that we had been introduced to during our preconference workshops. The program coaches participants for leadership, teaching them self-awareness techniques, how to work from a source of natural strength and how to inspire their team to do the same.

In the News: PCGAAP, Accounting Jobs, Sustainability

Happy Friday, dear readers – it has been a while. My weekly news wrap up post will now appear bi-weekly, with a post which spotlights interesting content from around the web appearing on alternate weeks. Should you want more frequent updates of news related to the accounting profession, please consider following AICPA Media Relations on Twitter @AICPANews or subscribing to the Media Relations RSS feed.

Now let’s get to the news, shall we?

One of, if not the most, pressing issues facing the accounting profession is the debate over the creation of separate reporting standards for private companies. The chorus of voices on one side of the issue got a lot louder this week with the announcement that thirty-three state CPA societies have joined the AICPA in calling upon the Financial Accounting Foundation to create a separate standard setting board for privately held companies. Michael Cohn of Accounting Today writes that AICPA advocates a separate board for private company accounting standards independent of the Financial Accounting Standards Board, under the oversight of the FAF. AICPA Chairman Paul Stahlin, CPA, said “after over 30 years of research by numerous diverse and independent groups, the only conclusion is that an autonomous standard-setting body under FAF to set differential standards for privately held companies must be created.”

CPAs: Showcase your Volunteerism with LinkedIn

CPAs are passionate about giving back and lending their expertise through volunteer work. But how many of your peers, coworkers or clients know about your volunteerism or the causes you support? There was no area to feature these accomplishments on LinkedIn…until now!

Highlight your Passions

In early September, LinkedIn launched a new feature allowing users to add volunteer positions, causes they care about and organizations they support. It’s simple to use. Here’s how:

Future Accountants Leverage Competition as Career Prep

Last week’s CPA Success post “Labor Day 2011: Laborers Wanted” cited Rick Telberg’s CPA Trendlines blog indicating that 34,800 more jobs in accounting and bookkeeping were posted in August 2011. Even as the market continues to struggle and the outcome of President Obama’s jobs plan remains unknown, this is still good news for the profession. In fact, it puts pressure on the AICPA, educators and other accounting influencers to ensure that there are skilled candidates to fill these positions and the many more that will be available when the economy finally rebounds.

The AICPA is rising to this challenge and encouraging young people to learn more about the accounting profession.

In the News: Hurricane Irene, Cloud Computing

As Topical Storm Irene left a trail of devastation in its wake, initial estimates of damages were in the billions. For individuals struggling to put the pieces of their life together, the aftermath can be extremely difficult to navigate. Michael Eisenberg, CPA/PFS, told MarketWatch that gathering the facts and carefully evaluating contractors was the prudent approach. “As much as somebody wants to jump in and do something now, you need to step back a little bit, take a breath, get your wits about you before you start making decisions,” said Eisenberg. Mitchell Freedman, CPA/PFS, advised readers that in the article if their house is unlivable, they need to find out whether their insurance policy covers the expense of a hotel or rental apartment.

In related news, the AICPA wrote a letter to the IRS asking them to extend the Sept. 15 filing deadline for business tax returns for tax payers and preparers in areas impacted by Hurricane Irene. Mike Cohn of Accounting Today reports that the AICPA asked the IRS to use its administrative authority to grant at least a two-week extension of the deadline for those in the areas affected by the hurricane. Patricia Thompson, CPA, chair of the AICPA’s Tax Executive Committee, also asked that any relief apply to situations in which the taxpayer, tax return preparer or the records are located in areas ravaged by the hurricane. The Tax Adviser reports that the IRS announced September 1 that taxpayers in certain areas affected by Hurricane Irene have until October 31 to file certain returns and make payments normally due before then. The areas eligible for relief include parts of North Carolina, New Jersey, New York, and Puerto Rico; the IRS expects to provide similar relief to other places affected by the hurricane, such as Vermont

As many business are considering transitioning to cloud computing, a CFO.com article tackles the not-so-simple question of what it means to ‘move to the cloud.’ As CPA firms who have adopted the cloud model likely know, there are a number of different options for companies looking to make the switch. In the article, Timothy Chou provides real life examples and breaks down six distinct different ways to make the move.

Going Concern recently covered the AICPA’s announcement of the second annual accounting case competition. The article notes that the contest asks college students to flex their fraud and forensic skills in advising a fictional client on a major overseas expansion. “The competition is an opportunity for students to get a hands-on, real-life understanding of one of the fastest-growing interest areas in accounting: fraud and forensics,” said Jeannie Patton, AICPA vice president for students, academics and membership. The top three teams will strut their stuff in Washington D.C. and the one that does the best job keeping the project on track — and on the right side of the law — gets $10,000.

If you come across a recent article of note about the profession, please let me know in the comments section or send me an email.

James Schiavone, AICPA Staff.

In the News: Women to Watch, Financial Literacy, CPE

A recent AccountingWEB article spotlights the Women to Watch Program, an effort of the AICPA’s Women’s Initiatives Executive Committee, which will be honoring women who have made significant contributions to the accounting profession and to the development of women. Candidates are nominated by their peers and firm. Award winners will be honored at events sponsored by their CPA societies. "The women who are selected for the Women to Watch awards have made some outstanding or unique contribution to the profession. They have been successful in integrating their personal and professional lives. They are more visible because of the awards. They become role models. They prove it can be done," added Yasmine El-Ramly of the AICPA.

In the News: Financial Literacy, Mortgage Interest

Jimmy Williamson, CPA, and member of the AICPA’s financial literacy commission spoke to the Contra Costa Times for an article about the Consumer Financial Protection Bureau. The CFPB, designed as a one-stop place for consumers to file complaints about financial products, is currently only handling credit card complaints. “Like any new federal agency it takes time for it to get its wheels rolling," said Williamson. “It's designed to help consumers make better financial decisions, if they are borrowing money for a home, if they are getting a credit card, those kinds of things. It's designed to improve transparency.”

Engaging the Next Generation of CPAs

The latest employment numbers indicate that it continues to be a tough year for many Americans struggling in the job market. Yet, I am encouraged by recent AICPA research that shows the demand for accounting professionals is poised to buck national trends. The AICPA’s 2011 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits reports on a national survey of public accounting firms hiring and colleges and universities granting accounting degrees. The report identifies key trends in accounting enrollment, graduation and hiring through the 2009-10 academic year.

Mark Koziel, AICPA Director - Specialized Communities & Firm Practice Management, says “the 2011 Trends numbers jibe with what we’re seeing among our members’ 2011 PCPS CPA Firm Top Issues Survey results. Even though client retention is generally the top concern, among larger firms, succession planning still ranks within the top five.” Firm clients are struggling in the poor economy, but firms still face the pending retirements of their boomer partners and staff.