The Accounting orgs. Explained
Key Points:
NASBA= Serve the accounting industry
AICPA= Advocate for and develop the accounting profession
State Boards= Individual boards that make up NASBA
The Accounting Organizations Explained:
NASBA: National Association of State Boards of Accountancy
“The forum for the nations 55 State Boards of Accountancy” -per NASBA website
Administrators of the CPA Exam
They ensure that all the state boards are operating effectively.
Ensure accounting profession is holding itself to the highest standards of quality and integrity (AKA avoid another Enron/Arthur Anderson)
Respond to pending regulation and legislation which could impact the profession
Hold annual conferences
Publish white papers and annual reports
Bottom line: NASBA’s main responsibility is to serve the accounting industry. They ensure accountants are being safe, smart, and ethical so that we can maintain trust with the general public.
AICPA: American Institute of Certified Public Accountants
World’s largest professional organization for CPAs
Mission Statement: “Drive accounting and finance to the future by giving you the support, skills, and insights to meet the demands of a constantly changing world.”
Set ethical standards
Develop audit and accounting standards
Advocate for the accounting profession’s interests
Bottom line: The AICPA undertakes their mission by advocating for the profession by educating and communicating with policy makers on issues affecting the accounting industry. They are always trying to look out for and vouch for the CPAs… aside from the fact that they are the ones that make the CPA exam.
State Boards of Accountancy:
Each state has their own State Board of Accountancy
They each make up NASBA
Regulatory bodies that oversee and enforce the licensing and practice of CPAs within their state
Ensure integrity, competency, and ethical conduct
Determines who is and is not eligible to sit for the CPA Exam
Set ethical standards
Set CPE requirements
Bottom line: These are the individual parts that make up NASBA. They each set their own regulations within their state but come together at the national level through NASBA.
