VSCPA Asks Gov. Bob McDonnell to Support Board of Accountancy's Fast-Track Regulatory Package

January 12, 2010

The Honorable Bob McDonnell

Governor-elect

Dear Governor-elect McDonnell:

I am writing on behalf of the 8,700 members of the Virginia Society of Certified Public Accountants (VSCPA) in reference to the Virginia Board of Accountancy’s (BOA) fast-track proposal to conform its regulations to the public accountancy statutes as revised in 2007.

The VSCPA has carefully reviewed the proposal and fully supports it as submitted, as well as the notion that fast track is the appropriate channel for these changes. The statute revisions made in 2007 were comprehensive and created multiple instances of conflict between the statute and the existing regulations. This has caused significant confusion for both the public and licensed CPAs about the current rules for the practice of public accounting and created a high risk of non-compliance. As a result, we believe it is of the utmost importance that these changes be approved and put into place as soon as possible.

The BOA proposal:

• Removes regulations that are no longer necessary because the requirements in the statute are clear, such as definitions and standards of conduct and practice;
• Removes or updates regulations that are in conflict with the statute, specifically those involving licensing of individuals and firms and peer review requirements;
• Eliminates time-sensitive regulations that are no longer needed, such as those related to administration of the CPA examination and some continuing professional education requirements;
• Eliminates regulations that simply refer to other regulations;
• Clarifies the continuing professional education requirements and how to comply with them; and
• Adds interpretations required by the statutes, including how to determine:
  • When persons or entities are considered to be located in Virginia;
  • Whether the principal place of business of a person using the CPA title, or of a firm, is in Virginia;
  • Whether a college or university is an accredited institution;
  • When a CPA is providing appropriate supervision of firm personnel;
  • When a CPA is qualified to release or authorize the release of reports on attest or compilation services
    • Requires eight hours of CPE in attest or compilations services for such individuals
    • Requires firms to establish policies and procedures to ensure appropriate competency levels for such individuals; and
  • When it is appropriate for the BOA to enter into confidential consent agreements.

In our review of the proposal, the VSCPA paid particular attention to changes to continuing professional education requirements as outlined in section 18 VAC 5-22-90. We conclude that the changes are not substantive in nature, but simply make the requirements more understandable and remove outdated language related to a transition period that has already passed.

The VSCPA sincerely appreciates the opportunity to comment on these changes. If we can be of any service to you during this process, please don’t hesitate to contact VSCPA Government Affairs Director Emily Walker at (804) 612-9428 or ewalker@vscpa.com.

Thank you for your time and consideration.

Sincerely,

James K. Walker, CPA

Chair, VSCPA Board of Directors

Cc:       Virginia Board of Accountancy

            Martin L. Kent, Chief of Staff,

            Eric Finkbeiner, Senior Advisor for Policy

            Robert C. Sledd, Secretary of Commerce & Trade

            Bill Axselle

            Travis Hill