National Accreditation Commission to Consider New Specializations

June 1999 Issue

By Robert L. Israeloff, CPA

The AICPA's National Accreditation Commission (NAC) is charged with providing a means for identifying, recognizing, advocating, and supporting new areas of specialization that warrant an accreditation program. Formed last year as a result of the AICPA Council's approval of the Special Committee on Accreditation of Specialization's report, it is composed of seven members from all segments of the profession and reports to the AICPA board of directors.

NAC is to provide rigorous oversight of AICPA accreditations, including the two existing ones--Personal Financial Specialist (PFS) and Accreditation in Business Valuation (ABV). Key to NAC's efforts is a proactive, market-driven approach to accreditation. Using a screening process, NAC first will consider new or emerging services. It then will address existing specialties where there is no dominant provider or there is a significant competitive threat. It initially will focus on areas where the potential market is large and the benefit to CPAs is a real possibility.

The AICPA Vision Project concluded that specialization is critical for the future of the profession. Furthermore, the AICPA's image program aspires to change public perception of what the CPA does. It is helping the Institute add to the CPA "brand" so the profession is known not only for auditing, tax, and accounting services, but for consulting, financial planning, information technology--and so on. Accrediting specialization will support expansion of market perception of the CPA's expertise.

Recent research commissioned by NAC suggests that there is opportunity for the profession to widen the business community's perception beyond historic competencies and well-organized core issues. However, there is still a big gap between where the profession is and where it needs to be if CPAs are to gain the kind of market acceptance that assures them improved economics--in both public practice and industry--from new accreditations.

In its initial deliberations, NAC concluded that:

It must identify areas to accredit that will bring economic benefit to its members, including greater fees for public members and enhanced career progress for members not in public accounting, with particular emphasis on members in smaller firms and business entities;

It will search initially for broad-based rather than niche accreditations in an effort to change current marketplace perception that CPAs provide only accounting, auditing, and tax services, and thus provide an opportunity to extend the CPA brand;

In considering a new accreditation, it must understand the market from the vantage point of accreditation sponsors while at the same time challenge the sponsors on the issues of market and CPA acceptance, competition, and program requirements;

Appropriate entry and maintenance requirements for a specialty accreditation should encourage, rather than hinder, membership participation;

A system of accessible and ongoing training and support from the AICPA is critical to ensuring success of any accreditation program.

At the present time NAC, in conjunction with the Information Technology Executive Committee and AICPA staff members, is seriously considering an accreditation in information technology. This hits squarely with the technology services (a core service) and technology adeptness (a core competency) of the CPA Vision and cuts across industry and practitioner members. The accreditation could have very wide application to the profession.

The specialist here is one who can bridge the gap between the "techie" and the owner or business management in making strategic technology-related decisions. Early returns in market research reveal that small business owners and executives clearly need and deserve unbiased professional guidance in this area. NAC is conducting market research to obtain members' reactions to possible accreditation in information technology strategy.

NAC identified and is reviewing a number of other possible specialty areas, including forensic accounting and litigation services. In addition, NAC will work closely with the Business and Industry and Assurance Services Executive Committees in the coming months as it considers possible accreditations in the new finance and elder care areas.

In addition to evaluating various areas for accreditation, NAC continues to gather information on alternatives to the typical "3E" (education, experience, examination) approach to accreditation. For example, in addition to evaluating the potential applicability of the new CPE competency model to accreditation, NAC also seeks to understand the approach to accreditation by chartered accountants as well as other professions (e.g., the American Bar Association). Looking ahead, NAC also will explore the possibility of working with organizations that currently sponsor CPA-specific accreditation programs. *

Robert L. Israeloff is chairman of the board of directors of Israeloff, Trattner & Co. CPAs PC. He is a past president of the NYSSCPA and the AICPA.