Magazine article The CPA Journal

AICPA Council Authorizes Vote to Amend Bylaws to Permit CPAS Working in Non-CPA Firms to Issue Complications

Magazine article The CPA Journal

AICPA Council Authorizes Vote to Amend Bylaws to Permit CPAS Working in Non-CPA Firms to Issue Complications

Article excerpt

It its fall meeting, AICPA Council authorized a membership vote to change the AICPA's bylaws to require that CPAs working for non-CPA firms that issue compilation reports participate in a peer review program. At its spring meeting, Council had voted to change the form of practice rules to permit CPAs working in non-CPA firms to issue compilation reports in their own names, provided that such reports were subject to peer review.

The AICPA member vote will have no immediate effect on who can issue compilation reports, because that authority depends upon state licensing laws. In the meantime, however, the AICPA and NASBA will revise the third edition of the Uniform Accountancy Act to conform with the AICPA rules. The expectation is that over time state licensing boards will revise their statutes and rules to conform with the UAA.

In the minds of many, the change to permit CPAs working for non-CPA firms to issue compilation reports was initiated in order to provide a basis for Florida to repeal its legislation that created a fourth level of service, called an assembly. Florida law, in response to legal battles with American Express Tax & Business Services, permits all CPAs-including those working in non-CPA firms-to issue assembly reports. The problem is that "assembly" does not exist under AICPA professional standards; AICPA members issuing assembly reports in Florida violate the AICPA's Code of Conduct. It was expected that by changing the AICPA's rules, Florida could abandon the assembly approach.

In an op-ed piece in the October Practical Accountant, Lloyd "Buddy" Turman, executive director of the Florida Institute of CPAs, questioned the AICPA's decision to allow CPAs in non-CPA firms to issue compilations. Following the latest Council action, Turman told The CPA jour-nal that, at the moment, the Florida Institute does not have any plans to seek repeal of the assembly statutes. …

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