CPA Competency-Based Experience Pathway & UAA Exposure Draft
On September 12, the AICPA & NASBA issued an exposure draft on the CPA Competency-Based Experience Pathway, offering an additional pathway for CPA candidates to meet initial licensure requirements in response to pipeline issues instead of earning a master’s degree or a bachelor’s degree and up to 30 additional credit hours at an institute of higher learning. Under this alternative pathway, CPA candidates would need a bachelor’s degree, complete one year of professional general experience, pass the CPA Exam, and exhibit competency in specific professional & technical areas. In addition, on September 30, the AICPA & NASBA issued an exposure draft on proposed Uniform Accountancy Act changes. The proposed changes to the UAA would facilitate the adoption of the Competency-Based Experienced Pathway. Comments are due on the CPA Competency-Based Experience Pathway by December 6, and comments on the UAA are due by December 30.
FASB Proposal for Hedging Accounting Improvements
The AICPA has proposed changes to the independence guidance for 529 plans. The original interpretations has deemed 529 plans to be direct financial interests. Due to changes in how plans are run and the types of plans, PEEC has reconsidered this position and is now proposing treating 529 savings plans as indirect financial interests. Comments are due October 30th.
Proposed Ethics Interpretation: 529 Plans
The AICPA has proposed changes to the independence guidance for 529 plans. The original interpretations has deemed 529 plans to be direct financial interests. Due to changes in how plans are run and the types of plans, PEEC has reconsidered this position and is now proposing treating 529 savings plans as indirect financial interests. Comments are due October 30th.
Financial Data Transparency Act: Joint Data Standards
The proposed joint data standards for the Financial Data Transparency Act (FDTA) were issued in August 2024. The public is invited to make comments on the proposed rule by October 21, 2024. In this blog, we will walk through the different data standards that were proposed jointly by the 9 agencies. This is a must watch as you don’t want to miss your opportunity to review the rule before enactment, and provide your feedback.
The Risk of Access Agreements to EBP Audits
In July 2024, the Employee Benefit Plan Audit Quality Center (EBPAQC) Executive Committee issued an important letter warning auditors conducting ERISA employee benefit plan audits about the potential risks of signing nondisclosure agreements or similar contracts with recordkeepers, third-party administrators (TPAs), and other service providers.
AICPA’s NPAG Releases Data-Driven Strategies
This past July, the AICPA’s National Pipeline Advisory Group (NPAG) related its Accounting Talent Strategy Report to address the accounting talent shortage. This report was based off of data collected from a national pipeline survey, focus groups with state societies and firms, and discussions with professional and regulatory bodies. More than 7,950 students and accounting professionals took the national survey, and more than 1,600 people participated in the focus group. The report analyzes the root causes of the accounting talent shortage, potential solutions, and next steps forward.
Derivative Scope Exceptions
The FASB has issued a proposed ASU, DERIVATIVES SCOPE REFINEMENTS AND SCOPE CLARIFICATION FOR A SHARE-BASED PAYMENT FROM A CUSTOMER IN A REVENUE CONTRACT, which will provide additional scope exceptions to derivative accounting and address diversity in practice with respect to revenue recognition. Comments are due October 21st.
Detecting Government Fraud – AICPA 2024 Report
The AICPA’s Government Performance and Accountability Committee issued the Detecting Government Fraud report in June 2024. The report highlights 4 cases of government fraud with what controls could have detected or prevented the fraud. The report also explores who is responsible for finding fraud, plus strategies to help you mitigate and address fraud in the public sector.
Disclaimer: The information contained within this blog is provided for informational purposes only. Viewing this material does not qualify for CPE credit. Additionally, this general knowledge is not intended to substitute for obtaining accounting, legal, or financial advice from a professional accountant with specific knowledge of your organization. Finally, watching this blog and/or subscribing to the newsletter do not create an accountant-client relationship.