PLANO, Texas, March 14, 2013 (SEND2PRESS NEWSWIRE — The Texas Association of CPAs (TACPA), supports effort to reduce burdensome regulations in Texas.
Texas Representative Phil Stephenson, CPA, recently filed two bills affecting CPAs and small businesses in Texas. The first bill, H.B. 1756, exempts from the state’s mandatory peer review program, CPAs who only prepare financial statements for small businesses. The second bill, H.B. 1757, ensures sole practitioners are represented on the Texas State Board of Public Accountancy.
Stephenson’s H.B. 1756 lessens the burden of participating in the State’s inspection program by removing compilation reports prepared for micro- or small-businesses from the state’s mandatory peer review program. “CPAs who prepare reports for small businesses with fewer than 100 employees and under six-million dollars in revenue do not present as great a risk for the public as those who prepare reports for large national businesses. Loosening this requirement will not harm the public’s interest,” said Stephenson.
John Furge, President of the TACPA, agrees. “The typical small business has stakeholders who are intimately involved with the business. They are on-site every day. There are no remote investors or pensions to protect. Even if there were to be an accounting failure, the consequences would affect very few people. The burden of inspection is simply not justified.”
The AICPA, (American Institute of CPAs), peer review program inspects financial reports issued by CPA firms ONLY for the purpose of insuring compliance with AICPA standards. It does NOT look for fraud. The Arthur Andersen CPA firm, for example, was peer-reviewed “without qualification” during the same period in which it reported on Enron. In the case of Enron, the reports were in compliance with AICPA standards, but the underlying accounting was rotten.
In 1999 The Texas legislature passed a law that provides for the AICPA peer review program to inspect the work product of Texas CPAs. Again, this was for the purpose of insuring compliance with AICPA professional standards.
To put the H.B.1756 in perspective, it does not affect audit reports, or review reports, only compilation reports.
The Texas State Board of Accountancy, however, interprets the AICPA program as being mandatory for any Texas CPA who performs any attest work, regardless of the size of the entity about which a financial report is prepared. The state of New York, in contrast, exempts unincorporated sole-practitioner firms and firms with two or fewer CPAs from its mandatory inspection program.
The Board’s insistence that these small reports be peer-reviewed has harmed the accountancy industry in Texas according to Furge. He points out that the Board of Accountancy’s own statistics indicate that “fifty-five percent of Texas CPA practice units have signed an affidavit stating they will no longer issue compilation reports. This is not good for the public.”
Not only that, said Furge, “If you have fewer CPAs performing these services, inevitably, the cost of obtaining these services must rise. This hurts small business!”
Stephenson’s introduction of H.B. 1757 is also directed at the local practitioner. This bill requires that at least two sole-practitioner CPAs be appointed to the Texas State Board of Public Accountancy.
The Texas Association of Certified Public Accountants is a Texas organization committed to representing local CPAs who practice public accountancy in their hometowns. More information: http://tacpa.net/ .
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DALLAS, Texas, April 23, 2012 (SEND2PRESS NEWSWIRE) — The Texas Association of Certified Public Accountants (TACPA – www.tacpa.net) announced today the opening of registration for its 2012 Spring Meeting and CPE Sessions. This conference is open to all Texas-licensed CPAs and meets all Texas CPE requirements.
The sessions will include “Compilation, Review and White Paper Engagement Under New SSARs (Statements on Standards for Accounting and Review Services),” IRS Updates, State Tax Essentials, and other topics totaling 12 hours of CPE credit. The conference will begin Friday May 18 at 8 a.m. and the final session will conclude at 3 p.m. on Saturday May 19, 2012.
TACPA presents courses targeted at the needs of the independent practitioner and small-practice CPA.
The conference is designed to provide CPAs, particularly independent or small-office practitioners, the opportunity to accumulate credits towards their annual CPE requirements as well as offer a forum to network with other CPA professionals and share ideas, experiences and best practices.
“These days, many CPAs are completing their CPE requirements online. While that’s a perfectly viable strategy, there still is a need for a place where you can meet with your peers from time to time. When you work independently, it’s awfully nice to be able to occasionally share ideas, thoughts, and experiences face to face,” said Dave Brown, Executive Director of the TACPA.
The 2012 Spring Meeting marks our third quarterly meeting of the fiscal year and will be held May 18 and 19 at:
The Doubletree Hotel – San Antonio Airport
37 NE Loop 410 (@ McCullough)
San Antonio, TX 78216.
Those interested in attending may register at http://conta.cc/SpringCPE .
TACPA will be holding its Annual Meeting and elections in Houston, Texas in August and will host a Fall meeting in Dallas in November. Information on future meetings can be found at the TACPA website: http://tacpa.net .
The Texas Association of Certified Public Accountants was founded in 2001 to provide a voice to the independent practitioner and small-practice CPA. TACPA is a nonprofit organization dedicated to representing the interests of the small office CPA in Texas.
News Source: Texas Association of Certified Public Accountants :: This press release was issued on behalf of the news source by Send2Press® Newswire, a service of Neotrope®. View all current news at: http://Send2PressNewswire.com .