AICPA AICPA Holds Teleconferences on XYZ for Members in Industry

NEW YORK—Representatives of the American Institute of CPAs (AICPA) encouraged members in industry to vote in favor of its proposed global credential during the first of two teleconferences in November, two weeks after the AICPA sent ballots to hundreds of thousands of accountants to vote on the controversial designation.

“We have scheduled two teleconferences…to help educate” members in business and industry about the credential, AICPA Vice President John F. Morrow stated in a letter sent to state society representatives. “We are concerned that many of them have some awareness of the proposal, but might not be familiar enough with the issues to feel comfortable casting a vote.”

Morrow moderated the first teleconference that featured a panel of AICPA members—Judy Trepeck, the CEO of the Global Credential Steering Committee, and two members of the AICPA Business and Industry Executive Committee (BIEC)—who fielded questions from participants. Panelists discussed why they supported creation of the International Institute of Strategic Business Planners (IISBP) and importuned participants to vote for the credential.

The AICPA in November launched a kind of 11th hour campaign—including the teleconferences and letters to its members—to whip up support for the IISBP. Meanwhile, some state societies and firms reiterated their opposition to the IISBP—better known as XYZ. Governing bodies of the California CPA Society (CALCPA) and the Florida Institute of CPAs (FICPA) passed resolutions urging their members to vote against the proposal, while the BIEC scrambled to mobilize its supporters. Ballots are due to the AICPA’s independent tabulator by Dec. 28.

“This initiative is about validating what you already do,” said Trepeck, during the Nov. 14 teleconference. “It is about changing expectations of employers, so each one of you will be involved in strategy and decision making all the time, whether there’s a financial question or not. We say this initiative is founded on the recognition that businesses are seeking professionals who bring a broad competency…the initiative is about a breadth of information.”

Trepeck joined Max Stinson, a member of the AICPA Board of Directors, BIEC members Stephen Ellis and Charles Felix, and AICPA member Rudy Hertlein in sanctioning the credential.

“The IISBP will provide holders with international recognition and credibility…operating in a global marketplace,” Stinson said. “The AICPA has taken a leadership roll for your future; you the members need to determine which way we’re headed for the next 10, 20, or 30 years.”

Panelists said the IISBP would create a “knowledge resource” drawing from other professional areas—information technology, human resources and business management—to create a recognized credential that would represent a minimum amount of experience and expertise. Members with any credential recognized by the IISBP would be able to sit for a “self-assessment” to earn the designation after five years in their field; people without a certification would be able to sit for the exam after eight years in their fields.

Trepeck addressed concerns over inclusion of non-CPAs by saying that the CPA would raise the bar for other professions because the AICPA was taking the lead on the designation.

“The market research says it should be open to other professions because it otherwise would be perceived as a rebranding of the CPA,” she added.

Non-CPA membership has been a major bone of contention among the 13 state and municipal societies that have come out against the credential. That was the second reason the FICPA Board of Governors passed a resolution urging its members to vote no on the ballot. The resolution also called attention to the fact that CPAs are already providing the kind of integrated services called for under the proposed credential and that the IISBP would diminish the role of the CPA, thus violating the CPA Vision.

At least one panelist during the teleconference said the establishment of the new credential would diminish the numbers of CPAs in industry.

“You’ll see an erosion of CPAs in industry,” said Ellis. “But it’s still a viable career path to become a CPA first and pursue the IISBP later. There will be an erosion, but I don’t think that’s necessarily a bad thing.”

“To me it’s a sign of desperation,” said Elliot Hendler, liaison to the NYSSCPA’s Industry Oversight Committee. “That’s colored by my opinion on the whole concept of the IISBP…(but) I don’t think there will be too much on the con side. I’m just wondering who hasn’t voted yet…there’s been so much publicity…I don’t know whose votes they’re trying to influence. Everyone I know has voted already.”