AICPA

Regulatory agency actions and updates for March 11, 2010:

A dearth of Ph.D. professors of accounting casts a pall on what would otherwise be deemed good news for the profession: this year has seen a significant increase in enrollment in accounting programs at colleges and universities nationwide.

The problem: accredited accounting programs typically require roughly 50 percent of full-time accountancy faculty have a doctoral degree, and as enrollment spikes, there must be a corresponding increase in Ph.D.s.

This hasn't materialized.

The AICPA is seeking nominations for CPAs interested in sitting on one of four panels that will re-examine the passing score of the new Uniform CPA Examination, CBT-e, which launches on Jan. 1, 2011.

The AICPA filed a has filed a lawsuit seeking an injunction barring the Federal Trade Commission (FTC) from applying its so-called "Red Flags Rule" to CPAs.

“We do not believe that there is any reasonably foreseeable risk of identity theft when CPA clients are billed for services rendered,” AICPA President and CEO Barry Melancon said in a statement. “As trusted advisors, CPAs are personally acquainted with their clients and already adhere to strict privacy requirements governing identifying information.”

David A. Lifson, past Society president and chair of its Tax Reform Committee, has received the 2009 Arthur J. Dixon Memorial Award from the Tax Division of the American Institute of Certified Public Accountants (AICPA), the accounting profession's highest award in the area of taxation. The annual award memorializes Arthur J. Dixon, a CPA with an outstanding record of service to the tax profession and to the AICPA Tax Division.

The number of accounting graduates continues to rise, according to an AICPA report. More than 66,000 people obtained bachelor’s and master’s degrees in accounting during 2007-08, the most since the AICPA began tracking the data in 1972, representing a 3.5 percent rise over 2006-07.

Will there be jobs waiting for the recent graduates? The study reports that hiring has declined overall as a result of the economy, but midsize to large regional firms (50-200) reported an increase in hiring new accountants. Hiring started off strong, but tailed off by 2007-08 as the economy worsened, according to the report.

The NYSSCPA has released two new comment letters, one to the PCAOB regarding its proposed auditing standard for engagement quality review, and a second to the AICPA addressing its proposed statement on auditing standards for compliance audits.

Ernest A. Almonte, both chairman of the AICPA and auditor general for the state of Rhode Island, came to the FAE's Nonprofit Conference today to bring inspiration to CPAs working in the industry. But first, he honored someone he finds inspiring: NYSSCPA Executive Director Lou Grumet.

Before his luncheon address, Almonte presented Grumet with a specially engraved coin. “As I travel across the country, I give it to CPAs and to people like Lou who work to advance the profession,” he said.