April 2000

AICPA and Other Groups Explore New Designation

Proposal Would Globalize Accounting Profession

The AICPA and seven other leading professional accounting institutes from around the world have formed a global task force to explore creating a new international business professional designation. This designation could redefine the accounting profession.

"International market research indicates a demand for multidisciplinary business advisors who offer far more than the services based on the competencies of a single profession," said task force COO Robin Hamilton Harding, former CFO of Bell Canada. "The aim of the task force is to create a globally recognized designation that would enable professionals to seize the opportunities presented by an increasingly global economy."

In addition to the AICPA, task force members include the Canadian Institute of Chartered Accountants, the Institute of Chartered Accountants in Australia, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants in Ireland, the Institute of Chartered Accountants of New Zealand, the Institute of Chartered Accountants of Scotland, and the South African Institute of Chartered Accountants.

AICPA Chair Robert Elliott pointed out that the CPA license is, strictly speaking, a license to audit, review, or compile financial statements. He said the designation would complement existing professional credentials

"The new designation includes broader areas of technology, management consulting and performance management, planning and international services," Elliott said.

He added that the designation would offer CPAs a broader, international platform from which to provide services.

"It will only affect CPAs who want to use it," Elliott said. "They will potentially be practicing and providing a broader range of services."

Implementation Plans

Elliott said he hopes that the task force's proposal will go to AICPA Council for discussion at its October meeting.

"As with all major initiatives affecting our profession, Institute members will be consulted and kept informed of developments as they unfold," AICPA President Barry Melancon said.

If Council approves the task force's proposal, the next step would be presentation of the proposal to the membership. AICPA bylaws require a two-thirds membership vote for passage.

"If the membership approves it, we could offer the new designation by 2002," Elliott said, adding that if approved, a major marketing endeavor would support the new designation.

Elliott also stated that the new designation would not require additional regulation of the accounting profession.

"Regulators may not yet be aware of it ," he said, "but it should have no effect on their regulatory mission, which is to protect the public relying on the attest function. There is no reason for them to regulate the new designation."

NYSSCPA leaders will study the proposal's impact on Society members.

"In the ever-changing world of accounting as it adapts to the new economy, I believe that the AICPA has taken a courageous and farsighted look at the type of designation and credentialing which will help position our members to be successful in the future," NYSSCPA Executive Director Louis Grumet said. "As specific information becomes available, the Society's board of directors will be giving serious consideration as to whether or not the forthcoming recommendations will be a benefit to CPAs in New York." *