MACPA Educator’s Conference:

State Board ReportAn Update: 2014

Speaker Introduction

►Ray Speciale, Esq., CPA

►Mount St. Mary’s University, Associate Professor of Law and Accounting

►Appointed to Maryland State Board of Public Accountancy in 10/07—Term Ended 12/13

► Former Educator Member of the Board

Newly Appointed Educator Member of Board

►Prof. Phillip J. Korb

►Chair of Department of Accounting, University of Baltimore Merrick School of Business

►Teacher/Practitioner/Scholar

Overview of Board Functions

► Seven Member Board CPA Practitioner Members (4) Education Member (full-time professor) (1) Public/Consumer Members (2)

► Primary Function: Protect the Public►Regulatory Authority► Legislative Initiatives►Discipline and Enforcement►Adjudication

Presentation Overview

►Education Requirements: Review/Update

►CPA Exam Statistics

►CPA Exam: Practice Analysis

►Portfolio Credits

Presentation Overview (cont’d)

►Testing for Credits (ACE, AP, CLEP, etc.)

► Foreign Transcript Evaluation

►Counting Quarter Hours

►CPE Recording

►Avoiding Exam Application Denials

Educational Requirements

► 120/180 to sit for exam (with Group I requirements met)

► 150/225 required for licensure►Requires attainment of baccalaureate degree► 2 Groups of Requirements Created Group I—Accounting plus Ethics Group II—Business Related Subjects

►Graduate courses gain benefit of 1.5X multiplier

Educational Requirements

►Group I—Accounting Courses (30/45 hours) including: Auditing (3/4.5) Financial Accounting (9/13.5) Managerial Accounting (3/4.5) U.S. Federal Income Tax (3/4.5) Ethics (3/4.5)

Educational Requirements

►Group II—Business-Related Courses (21/31.5 hours) including at least 5 of the following: Statistics Economics Corporation or business finance Management U.S. business law Marketing Business communications

Education Requirements (Group II) Cont’d

►Quantitative Methods►Information Systems/Information

Technology

CPA Exam Stats (2013 to 3rd Qtr)Passing Rates

AUD: 46.91%BEC: 54.81%FAR: 48.15%REG: 48.77%

Are Revisions to Exam on the Way?

►Fall/Winter 2013 AICPA CPA Exam Alert: Is the exam aligned with needs of profession?

►“The Practice Analysis”

►BOE policy requires seven year reviews

►Launch in 2014

Revisions (cont’d)6 Phases

►Exploration (beginning in 2014)►Confirmation►Design of New Exam►Exposure of Proposed Changes►Finalize Design of Revised Exam►Announce New Exam

Portfolio Reviews

►Board recently addressed issue of portfolio reviews with UMUC

►Agreed to accept credits

►Case by case analysis

►Need for strong process and documentation

Testing For Credits

►AP, IB, ACE, CLEP are generally OK

►Need for transcripts from testing sponsor

►Staff concerns regarding how far this (and portfolio type credits) will go

Foreign Transcript Analysis

►Any courses taken from non-U.S. institution must be evaluated separately

►Starting in 2013 MD Board only accepts reviews by NASBA’s transcript evaluators

►Board has legal right to accept or decline evaluation provided

Quarter Hours

►History: (150/225) versus course by course analysis (3/4 or 3/4.5)

►Newly proposed regulation

►Potential problems at course by course analysis—need for communication and care if quarter hours used

CPE Recording

►Slow move toward electronic reporting

►Still some years down road

►Review of current requirements

Application Evaluation--General

►No review until application complete

►Course checklist complete and accurate

►Receipt of all required transcripts (including AP, CLEP, DANTES/DSST, AND ACE)

►Receipt of foreign credentials evaluations

Avoiding Common Errors

►Do not apply prior to graduation►Omitting required information►Name changes►Ethics►Need U.S. Business Law and U.S. Taxation►If title does not readily match, need CD

and/or syllabus used►Accredited institutions

Conclusion

QUESTIONS

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COMMENTS?