Academic journal article Journal of Accountancy

CPA Firms Are Being Urged by the AICPA State Regulation and Legislation Team to Review Their Registration Compliance Procedures to Ensure That They Are Complying with Out-of-State Registration Requirements When Performing Attest Engagements

Academic journal article Journal of Accountancy

CPA Firms Are Being Urged by the AICPA State Regulation and Legislation Team to Review Their Registration Compliance Procedures to Ensure That They Are Complying with Out-of-State Registration Requirements When Performing Attest Engagements

Article excerpt

CPA firms are being urged by the AICPA State Regulation and Legislation team to review their registration compliance procedures to ensure that they are complying with out-of-state registration requirements when performing attest engagements.

The AICPA advisory was issued after recent activity by some state boards of accountancy to ensure that out-of-state firms operating in their states have met their registration obligations.

Several state boards have examined recent information on employee benefit plan audits provided by the National Association of State Boards of Accountancy (NASBA) and the U.S. Department of Labor (DOL) and compared it to the list of licensed firms in their respective states, according to the AICPA alert.

Some of those state boards have begun to send letters to CPA firms included in the DOL data that appear not to be appropriately licensed. The individual boards' actions and requests of CPA firms have varied. For example, according to the AICPA alert:

* Texas sent 120 letters to firms requesting that they sign a cease-and-desist order to close the investigation with no administrative penalty or costs.

* Arkansas sent firms a license application form and a short questionnaire.

Some state boards may opt for more punitive actions, including monetary penalties.

The AICPA is urging CPA firms performing any attest engagement to review their registrations in any state in which they perform these services.

This issue originally arose as a result of a heightened focus by regulators on CPA firms performing employee benefit plan audits. …

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