October 2000

AICPA Continuing with Cognitor Despite Dwindling Support

The American Institute of CPAs is standing by their push for the Cognitor credential despite the defection of the three institutes of chartered accountants in the British Isles in early October.

The British Isles unanimously opted out of the task force developing the designation tentatively named “Cognitor” in early October.

Citing a lack of support for the credential in the British Isles and doubts that the new credential would add value to the existing ACA designation, the Irish, Scottish and English Institutes of Chartered Accountants withdrew their support for the qualification.

Cognitor, which will be examined in greater detail in the November issue of The Trusted Professional, is the proposed name for an international business credential formerly known as XYZ. The credential would be used by professionals from a number of disciplines, including accounting, law, and even engineering.

Claiming that the Cognitor/XYZ business plan is “unviable,” the English Institute of Chartered Accountants (EICA) joined its Scottish and Irish counterparts in leaving the coalition of eight accounting organizations that was developing the Cognitor designation.

“We do not believe that the current Cognitor proposals represent the best way forward to continue to develop the international reputation and profile of our members, some 10% of whom already practice internationally,” said EICA President Graham Ward.

The American Institute of CPAs (AICPA) is spearheading development of the credential in the United States, and AICPA Chair Robert Elliott said in early October that there was still strong support for the Cognitor idea among the remaining consortium members.

The move by the British Isles members whittles down the eight-member international coalition developing the coalition to five countries, including the United States, Canada, New Zealand, Australia, and South Africa.

International support for the proposed credential remains strong in the five remaining member organizations, said Robin Harding, the chairman of the XYZ Task Force.

Yet, opponents to the Cognitor credential are growing more vocal since the three British Isles groups left the task force, claiming that a new business credential will dilute that of the CPA.

“Is the fear of further erosion in the AICPA membership the reason for pushing it [cognitor]? Then this should be addressed by being more responsive to the needs and wants of the members,” said James F. Morrell, a member of the NYSSCPA committee to further the CPA designation.