June 1999 Issue

Society Leaders Meet to Discuss Accountancy Bill

By Philip J. Luongo Jr.

In an unprecedented NYSSCPA meeting, then President George T. Foundotos and then President-Elect Alan E. Weiner conducted an open discussion with chapter presidents and other leaders to clarify issues raised by bill S. 4402 (subsequently introduced in the Assembly as A. 8600). The experience requirement changes put into effect by the bill were the main concern among participants.

S. 4402 establishes a one-track approach to fulfilling the experience requirement for licensure. One year of experience and 150 semester hours will replace the existing two years of experience (or one with a master's degree). In addition, nonattest engagements will qualify, and experience can be based on employment in industry, government, or academia. Consistent with the UAA, the bill also changes the focus with respect to assurance services from the individual to the CPA firm. For a complete explanation of the proposed changes, see the Questions and Answers About S. 4402 insert and Foundotos's viewpoint article in the May issue of The Trusted Professional.

Foundotos explained the process in developing the proposed legislation, which included visiting all areas of the state, writing other state societies to get their input, and attending AICPA regional council meetings. The NYSSCPA board of directors voted in favor of the experience requirement (24 to 3) at its February meeting.

"It has been a completely open process with as much member participation as possible," Foundotos said. "The result is a bill that is in the best interest of our membership."

Debate began after Foundotos outlined the changes to the experience requirement. Buffalo Chapter President Raymond M. Nowicki vigorously asserted that the experience requirement changes will undermine the perception of professionalism of CPAs. He said that the one year of experience within a CPA firm is essential.

Sandra Napoleon-Hudson also felt that experience within a CPA firm is key to the making of a CPA.

"We are the doorway for the students to come into the real world," she said. "We are uniquely qualified to mold them."

Foundotos replied that the CPA exam, the education requirement, and one year of experience verified by a licensed CPA is enough to ensure professionalism, especially in light of the changing business world.

"The primary focus is shifting to quality of work, not time and grade," Foundotos said.

Weiner added that approximately 11,000 Society members work in industry. Requiring experience to be gained exclusively within CPA firms would make it difficult for these members to fulfill the requirement.

"I think we have to recognize that one-third of our members are members in industry," Weiner said. "We're already losing too many people to other non-CPA activities."

NYSSCPA Executive Director Louis Grumet pointed out the importance of New York being substantially equivalent to other states.

"There could be a reciprocity problem if more experience was required in New York than in these other states," he said. "As technology allows people to conduct business across state lines like never before, reciprocity becomes an important issue to consider."

At an open board of directors meeting on June 5, Society members vigorously debated the changes made by both S. 4402 and > A. 8600. There was a consensus to leave the requirement as stated in the proposed legislation.