A years-long process to revise and clarify the Virginia Board of Accountancy’s (VBOA) regulations is nearing the finishing line.

On July 6, Gov. Bob McDonnell approved the VBOA’s revised regulatory package, which was submitted to the fast-track regulatory process on December 29, 2009. The revised package was published on August 2, and a 30-day public comment period is now ensuing. The regulations are eligible to go into effect 15 days after the comment period ends.

The VSCPA fully supports the revisions, which would conform the regulations to current public accountancy statutes that were revised in 2007. Nonconformity between the regulations and statutes has caused considerable confusion for both the public and licensed CPAs.

In a January 12, 2010, letter to McDonnell, the VSCPA reiterated its support for the package, stating: “We believe it is of the utmost importance that these changes be approved and put into place as soon as possible.”

The revised package:

• 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.
• 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
  • When it is appropriate for the BOA to enter into confidential consent agreements.

If you have any questions or comments on the regulations, the VSCPA urges you to contact VSCPA Government Affairs Director Emily Walker at (804) 612-9428.