In October 2006 an Exposure Draft to the Uniform Accountancy Act (UAA) was released that proposes to eliminate notice and fee requirements under substantial equivalency, allowing a licensed certified public accountant to provide professional services in any state without restraint. The state in which professional services are rendered has automatic jurisdiction to take enforcement action when the Board receives complaints relating to certified public accountants who provide services in Oregon under the revised substantial equivalency provisions. Substantial Equivalency provisions are only available for certified public accountants.
The Oregon Board of Accountancy and the Oregon Society of Certified Public Accountants have agreed to form a task force to consider whether the proposed revisions to substantial equivalency should be adopted in Oregon, and whether the proposed revisions would provide adequate public protection.
The Uniform Accountancy Act (UAA) is a model act developed by the American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountancy (NASBA). The Fourth Edition of the UAA was released in December 2005. The UAA is not binding on any state; rather each state board of accountancy may elect to adopt provisions of the UAA as the state board deems appropriate.
Background
Current Substantial Equivalency Provisions under UAA
Section 23 of the UAA provides a model for allowing certified public accountants who are licensed in one state (and whose principal place of business remains in the state of licensing) to provide professional services to clients in other states without the need to license in the second jurisdiction. This model is known as Substantial Equivalency and is based on three standards: 150 hours of education, including a BA, successful completion of all sections of the Uniform CPA exam, and one year of experience in public accounting. Under the current model for substantial equivalency, individuals who demonstrate these standards would be eligible to practice in a jurisdiction that has approved Substantial Equivalency after providing notice to the state of the intent to provide services in that state.
Current Substantial Equivalency Provisions in Oregon
Substantial equivalency provisions were approved in Oregon in 1999. Licensees in other states may provide professional services to Oregon clients by submitting an application (notice) and fee ($100 each year) to the Board. Depending on the services to be provided, the firm may also be required to register in Oregon. Oregon authorization under substantial equivalency is issued within 24 to 48 hours of receiving the notice. Oregon has issued substantial equivalency authorization to approximately 325 qualified licensees.
The Board would like to receive written comments from Oregon CPAs about the UAA proposal. Information about the task force and when it meets will be included in future newsletters. Your comments may be submitted by mail: Oregon Board of Accountancy, 3218 Pringle Rd SE, #110, Salem OR 97302; by fax: 503-378-3575; or by e-mail: heather.shepherd@state.or.us
The October 2006 Exposure draft and a Revised Exposure draft issued in March 2007 may be viewed at http://www.nasba.org
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