Commonly referred to as “mobility,” an increasing number of states have passed, or are considering, legislation to allow CPAs to practice across state lines without being licensed in each state. This easing of restrictions for interstate practice has been likened to a “driver’s license” approach, similar to the situation where you can drive through any state with the driver's license issued by your home state and you are subject to the laws and regulations of whatever state you're driving through – you don't need a separate driver's license for each state.

The comment period on the NASBA/AICPA proposed revisions will end on May 15, 2007.

The National Association of State Boards of Accountancy (NASBA) and the AICPA are promoting simplification. In fact, they released a proposal for exposure in December 2006, and released proposed amendments to the exposure draft on March 6, 2007. The March 6 document includes both explanatory material and the text of the proposed changes.

Essentially, the December Uniform Accountancy Act (UAA) revision proposed to grant “no notice, no fee” practice privileges to qualified individuals. CPAs practicing in another state, however, would be subject to that state’s regulations and enforcement.

Still, there were concerns about how some of the UAA provisions could affect mobility as a result of a broad interpretation of CPA firm registration requirements.

The AICPA and NASBA leadership concluded that mobility could be enhanced, and the public protected, if an out-of-state firm with no office in a state were required to obtain a permit only if it were providing an audit, examination of prospective financial information, or a PCAOB engagement to a client having a home office in the other state.

Under the proposed amendment to the December 11 exposure draft, an out-of-state firm without a permit could provide other attest and compilation services through individuals with practice privileges, but would, nevertheless, be subject to that state board’s jurisdiction. The firm would have to meet the qualifications for the other state’s firm permit, including its ownership and peer review requirements, if the firm provided other attest or compilation services for a client having its home office within the other state.

Individuals with practice privileges could provide services related to attest and compilation services for clients that do not have their home office in the other state, could provide non-attest services in the other state, and their firm could use the CPA title in the firm’s name in the other state, so long as their firm could do so in its home state (thus addressing the situation of firms from states that do not register sole proprietors as CPA firms).

It is important to remember the UAA is a model bill and set of regulations designed by AICPA and NASBA to provide a uniform approach to regulation of the accounting profession. Provisions of UAA have not been adopted in all jurisdictions.

The comment period on the proposed revisions will end on May 15, 2007. MACPA leadership is currently examining this proposal and welcomes feedback from members. If you have comments or questions, please e-mail MACPA Director of Government Relations & Regulatory Affairs John Lindley or call 248.267.3700.

Background
Professionals are being asked daily to cross state lines, via travel or electronic communication, to serve the needs of clients who are not restricting their business to a single state, and to provide expert technical resources to perform all levels of accounting services, including effective audits.

Currently each state has different requirements for licensure, registration or temporary permits for out-of-state CPAs who practice temporarily in the state. These diverse requirements frequently interfere with the public’s need to ask the CPA or CPA firm to provide professional services on short notice in various states. The changes being discussed at national and state levels would allow out-of-state CPAs and CPA firms to respond to the public's needs while continuing to ensure their appropriate regulation and discipline, regardless of the state of original licensure.

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