Tom Hood, CEO of Maryland Association of CPAs provides these special updates on the CPA Profession to their members. This is the latest developments in the CPA Profession featuring the latest developments in trends and issue in the legislative & regulatory areas. Covering the latest from the IRS, FASB, IASB, and the State of Maryland.
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MACPA 2012 PIU / Town Hall Leg / Reg Update
1. MACPA Professional
Issues Update
Regulatory Edition
By: Tom Hood, CPA,
CITP, CGMA
May 3, 2012
Columbia, MD
2.
3. The CPA
• Education (150 hours)
• Examination – Uniform CPA Exam
• Ethics – Separate Ethics Exam
• Experience – 2,000 hours of practical
experience
And CPE – - 80 hours of Continuing Professional Education reported every
two (2) years, including four (4) hours of ethics training
4. What CPAs think about the future
30 Future Forums
1,000 CPAs
Identified these top tr
7. Complexity
e biggest challenge
ng enterprises from
e on will be the
elerating complexity
the velocity of a
79%
ld that is operating
a massively
rconnected
tem.
51%
13. Our infrastructure for
regulating the US
financial markets has
been created from a
series of reactions to
ses and changes and is
m and
Refor
in needeet on Act
of repair.
Wa ll Str i
-Frank er Protect
Co nsum
Sarbanes-Oxley Act
Finan
cial R
egulat
dits ory Re
15. “a series of steps or stages t
once initiated, continues to t
final step because each step
triggered by the preceding o
resulting in amplification of t
signal, information, or effect a
each stage.”
16. Most changes come from regulators and standard sett
Us – Associations
Them – Federal & State
MACPA & AICPA
legislators
Infrastructure
OR
New laws, reg
& regulato
20. Maryland & Federal Tax Preparer Law
Threats to your CPA License
Well intentioned consumer group
Solving a problem – low income tax
frauds
But…creating problems for CPAS
– Licensed / Certified Tax Preparers
would be confusing to the public
– Tax Preparer Exam using ACAT /
H&R Block designation (ATA, ATP)
opens door for second tier license
– Misinformation / confusion
21. hieved through collaboration in professio
WA
A MT ME
ND
K
OR MN
ID
SD WI
WY NY
MI
*PA CT R
NE IA
NV OH
UT IL IN N
DE
CA CO WV
VA
HI
• Collaborative effort with AICPA – CPA/SEA –KYNASBA
KS MO M
& State CPA Societies TN
NC
DC
• 48 + DC states passed legislation in four (4) yearsSC
AZ
NM
OK
AR
• Maryland enacted it in 2008 MS AL *GA
TX LA
FL
CPA Mobility Legislation Pending - DC
GU
CPA Mobility Enacted 48 U.S. V
* CPA Mobility Enacted Only for Other
23. yland
- 10
99R
- 20
08
CPAs in Tax
e increase in IRS
tivity is swamping our
x practitioners and
sting them hundreds
hours in chasing
wn IRS notices.
24. oins AICPA
States
upporting
overnment
mployee
meeting
ttendance
28. regulations, and procedures
A Bill SB 128
Maryland Senate &
Maryland Governor
Law
om State Board
House passes bill
signs into law
Maryland State Boa
Public Accountan
31. Maryland
Regulatory
Update
CPA
Exam
Applica+ons
–
delays
up
to
120
days
CPA
Exam
Applica+ons
–
reasons
for
decline
New
safe
harbor
regula+ons
for
complila+o
Record
reten+on
Commissions
&
referrals
fees
CPA
licensing
Fee
reduc+ons
32. Top
reasons
for
CPA
Exam
denia
ot
reading
and
following
the
direc+ons
for
submiLng
the
applica+on
(#1
reason
for
DELAY)
ot
comple+ng
the
applica+on
completely
and
accurately
ot
lis+ng
ALL
names
the
applicant
has
used
in
the
past
and
present.
ot
lis+ng
ALL
transcripts
on
the
online
applica+on.
ot
having
ALL
official
transcripts
sent
directly
from
ALL
schools
the
applicant
has
aWended.
We
DO
ccept
transfer
credits;
we
must
have
the
official
transcripts
from
EACH
school.
ot
reques+ng
transcripts
for
other
credits/exams
taken-‐
AP,
CLEP,
DANTES
ACE
etc.
These
credits
m
LSO
appear
on
a
regionally
accredited
schools
transcript
listed
with
+tle
and
credits
granted
for
the
xam.
If
they
are
listed
in
a
lump
sum
we
must
receive
a
leWer
from
the
school
explaining
the
course
e
exams
were
accepted
for.
ot
submiLng
course
descrip+ons
and
course
syllabi,
especially
for
courses
taken
from
out
of
state
hools.
If
the
+tle
of
the
course
doesn’t
match
a
+tle
shown
on
our
educa+on
requirements
we
mu
ave
the
course
descrip+on
and/or
syllabi
from
the
catalog
for
the
year
you
took
the
course.
ot
comple+ng
the
curriculum
checklist
completely
or
not
comple+ng
it
accurately.
ot
having
a
course
by
course
evalua+on
done
for
the
purpose
of
taking
the
Uniform
CPA
exam
in
aryland
by
a
current
NACES
member
of
any
and
all
foreign
educa+on.
come
tax
not
taken
in
the
US
does
not
qualify
for
US
Federal
Income
Tax.
ou
have
not
taken
a
three
semester
credit
hour
course
devoted
en+rely
to
ethics.
NOTE***A
U.
S.
usiness
Law
course,
a
Law
and
Ethics
course,
an
audi+ng
and
ethics
course,
etc.
does
not
meet
the
quirements
for
ethics.
33. Safe
Harbor
=
6/1/2012
Compila,on
Repor,ng
Language.
ompila*on
does
not
cons*tute
the
prac*ce
of
cer*fied
blic
accountancy
if
the
compila*on
report:
ncludes
the
statement
“The
preparer
of
this
report
has
undergone
and
is
not
required
to
undergo
peer
review”.
Does
not
reference
the
Statements
on
Standards
for
oun*ng
and
Review
Services
issued
by
the
AICPA.
34. Record
Reten+on
Furthermore, the interpretation now allows a member to
contract with a client in advance as to which member-
prepared records or member’s work products constitute
client records and therefore will be returned to the client.
Finally, guidance pertaining to electronic records was
revised to clarify that members are to provide records in a
requested format if such records are available in that format
and are within the member’s custody and control.
However, if an electronic record contains formulas, the
member can elect to provide the record without formulas
unless the member was engaged to provide such formulas
with the work product.
35. ne
of
the
most
essen+al
things
you
should
know
about
your
Mar
A
license
is
that
your
license
expira+on
date
never
changes.
Onc
t,
it
stays
with
you
throughout
your
professional
life
as
a
CPA.
Ev
ur
license
is
placed
on
inac+ve
status,
or
if
you
haven't
renewed
me,
the
month
and
day
of
your
expira+on
date
will
always
remai
me.
erefore,
it
is
very
important
to
consider
your
license
expira+on
d
you
have
an
inac+ve
or
an
expired
license.
If
you
apply
to
the
Bo
reac+vate
or
reinstate
your
license,
your
fees
and
80
CPE
hours
ly
apply
to
the
remaining
length
of
your
current
two-‐year
term.
u
apply
to
the
Board
three
months
before
your
term
is
set
to
ex
u
will
only
be
covered
for
those
three
months.
ms
Permit
-‐
as
a
sole
prac++oner
is
not
required
to
hold
a
perm
en
if
the
individual
chooses
to
organize
the
business
as
a
corpor
a
limited
liability
company.
36. Maryland
fees
effec+ve
6/1/2012
A
Exam
(1)
Audi+ng
and
AWesta+on
—
$[249]
200;
(2)
Financial
Accoun+ng
and
Repor+ng
—
$[237]
200;
(3)
Regula+on
—
$[211]
180;
(4)
Business
Environment
and
Concepts
—
$[198]
180;
ensing
Fees
Renewal
fee
—
$[80]
50;
for
two
years!
Applica+on
for
inac+ve
status
—
$[40]
25;
Renewal
for
inac+ve
status
—
$[40]
25;
Reinstatement
for
inac+ve
status
—
$[60]
50;
Reac+va+on
from
inac+ve
status
—
$[80]
50;
Reinstatement
of
expired
license
—
$[120]
100;
Firm
applica+on
fee
—
$[80]
60;
Firm
permit
fee
—
${80]
60;
Firm
renewal
fee
—
$[160]
120;
37. Rights & Recognition
Max Teichman,
Frank Blacklock • Privilege of Self-
AG opinion of 1981
& William Rogers
Regulation
Grants rights to non-
SB 560 Defeated
Maryland Corporate
• Right to Sole Control CPAs for Reviews & Accountability Act
Comps.
over an Area of Practice
MACPA requests
reversal of AG Opinion
– “This is not an audit”
language added
/ stops
MACPA wins use of
ACPA “consultants” in firm Maryland
S M al
sever to letterhead at State
pts Special
attem 1924 Board
d Session
State Board of amen
Accountancy
law
Accounting Oct – Nov
Reform
formed
Maryland gin
task Force
As bend
S becomes the 1st n-CP at 2
No pts
addresses
SOX
MA
attem license S
state to restrict Tier
HB 1261 re-writes
State Board Hearing
practice for CPA Law - 1986
May 1, 2003
Ame
MACPA amendments Tax
CPAs
to ed requirements fail
tries
MAC
PA
CPE MAC
to pass 74 sim
n 19
Bill i 975
MACPA Forms Task Force and Ed
&1 surveys members
• CPA Bill signed April 10, 1900
88% Sub Equivalency
76% Peer Review & Safe
• MD is 3rd state (NY & PA)
Harbor
Terry Hancock
68% Non-CPA Ownership
chairs
/ Larry Kamanitz
Dawson Grove Legislative Allen Del
/
chairs
chairs Committee
chairs
Legislative
Legislative Legislat
Committee
Committee
Commit
38.
39. Public
Private Int’l
Company
Company
Compa
cial
rting
ting
cs
State Boards of Accountancy
53. Critical
Turning Point
-level
CFO
aff
Supervisor
Controller
Manager
54. become the household
names of this century will be
renowned for sustained,
large-scale, efficient
innovation.
The key to that capability is
neither company loyalty nor
free-agent autonomy but,
rather, a strong collaborative
community.
HBR, July-August 2011
collaboration curve replaces the
55.
56. 1835
a sentiment or an idea that they want
to produce in the world, they seek
each other out; and when they have
found each other, they unite.
From then on, they are no
longer isolated men, but a
power one sees from afar,
whose actions serve as an
example; a power that
speaks, and to which one
listens.
– Alexis de Tocqueville
sociations in America were seen as
57. leader s
ob is to set
ontext and
rovide
ope and
nspiration..."
58. Tom
Hood,
CPA.CITP
CEO
Maryland
Associa8on
of
CPAs
Business
Learning
Ins8tute
(443)
632-‐2301
E-‐mail
tom@macpa.org
Web
hNp://www.macpa.org
Blog
hNp://www.cpasuccess.com