CPA practice mobility is defined as the ability of a CPA licensed individual in good standing from a substantially equivalent state to gain practice privilege outside of their home state without getting an additional license in the state where they will be serving a client or an employer. A majority of states have adopted mobility legislation.
Nowadays, the essentiality of the professional services of CPAs have taken a steep growth. Every other organization is having its affairs on international basis. With this widening spectrum, the need of CPAs expands over the international line. The different aspects such as CPA license, certification, temporary practice, reciprocity etc. of the state accountancy legislation across 55 U.S. jurisdictions draws a sceptic line to the interstate mobility in practice privilege of CPAs. Hence, the states are adopting a uniform mobility legislation to allow licensed CPAs to provide professional services across the state boundaries. The mobility legislation also takes care of the public protection. The AICPA and the National Association of State Boards of Accountancy (NASBA), the national organization of state boards of accountancy, through a provision in the AICPA/NASBA Uniform Accountancy Act (UAA) is responsible for endorsing this approach.
Under Section 23 of the UAA, a CPA with a license in good standing from a jurisdiction with CPA licensing requirements essentially equivalent to those outlined in the UAA is deemed to be “substantially equivalent,” or a licensee who individually meets the requirements of:
Obtaining 150 credit hours with a Baccalaureate Degree
Minimum 1 year of CPA experience
Passing the Uniform CPA Examination
This provision helps in ensuring public protection and trust. The eradication of boundaries and allowing the CPAs to carry out their practice across the state boundary has made the professional expertise more readily available to businesses and individuals in U.S. The ability of the state board of accountancy to discipline is increased by being based on a CPA and the CPA Firm’s performance.
If a CPA has moved to another home state, then a reciprocal license is required for the new home state. As defined under UAA mobility you will require reciprocal license for your new home state. Mobility only applies if you do not move your principal place of business to another state.
If you are a CPA firm, then depending on the type of services your firm provides, you may or may not have to register your firm in every state where you provide services.
A nationwide effort to adopt a uniform CPA Practice mobility is underway. This will allow CPAs to render their services across state boundaries with no worries of unnecessary burdens which are not in the interest of the public. District of Columbia and the 50 states have sanctioned mobility laws and are now in the navigation and implementation phases.
The National Association of State Boards of Accountancy (NASBA) and AICPA have developed an online tool to help accounting firms and CPAs in U.S. which will help them understand the implications of CPA Practise Mobility.
Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc
CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to email@example.com and we will rectify it.
2015 © Edupristine. ALL Rights Reserved.