Accounting


the Virginia Society of CPAs. “We need a lot less memorization of facts and lot more utilization of facts.” More than 2,000 stakeholders —


from CPAs and accounting firms to trade groups, state organizations, academia and technology experts — are weighing in on the new CPA licensure model proposed by the National Association of State Boards of Accountancy (NASBA) and the American Institute of CPAs (AICPA). “Our next step is to


share this mostly positive feedback with our member- ship bodies this spring/ summer for additional input,” says Daniel J. Dustin, NASBA vice president of state board relations. “Due to advances in technology,


Dustin


newly licensed CPAs need to expand their understanding of systems, controls and data analysis in order to serve the rapidly changing client needs,” Dustin says. “We believe the currently proposed model will be adaptable and keep the CPA profession relevant for the future while maintaining strong public protection.” Approval by industry regulators is


expected this summer. While the final draft is nearing completion, the process will take three to five years to implement, CPAs say.


Tech transformation The proposed licensing changes are


designed not only to expand skill sets for CPA students but also to attract nontradi- tional CPA candidates. Accounting firms in general are


hiring the same number of people each year, but fewer are CPA candidates and more are new hires proficient in technology. “We need to increase the pipeline


of talent for the CPA profession to be sustainable and relevant,” says George Forsythe, a Virginia Society board mem- ber and a managing partner of WellsCole- man, an accounting firm in Henrico County. “It is in no one’s best interest to have


a shrinking talent pool, either through age or a desire to go into different industries,” he says.


50 | APRIL 2020 Nearly every industry


— not just the CPA profes- sion — is dealing with the explosion of technology, says Stephanie Peters, president and CEO of the Virginia Society of CPAs. “With technology


Peters


playing such a dominant role, transforma- tion is occurring in many industries,” Peters says. However, it is particularly relevant in accounting since data analytics has become a central tool, she adds. Traditionally, an auditor would


sample financial transactions and assess whether the correct processes were in place. “Now, artificial intelligence can look at all data very thoroughly and pull out exceptions, so auditors can look at data sets and be precise about what needs to be fixed,” she says. “An auditor’s ability to use artificial


intelligence to analyze much more data will provide high-quality audits, which will give greater assurance to the users of financial statements that the company’s financials are accurate and have proper internal controls in place,” she says. The ability to analyze data also


provides greater insight into business operations and opportunities to operate more efficiently, Peters says. “The CPA evolution is looking at where we are going and what we need to build up skill sets.”


Areas of specialization To be licensed, CPA candidates must


tackle three areas of training: education, examination and experience. They must attain 150 credit hours (the equivalent of five years of college), pass a 16-hour exam and gain one year of work experience. While changes to each of the three


areas are being discussed by stakeholders, the focus now is on revising the nation- wide uniform CPA exam. Divided into four parts, each four


hours long, the CPA exam has been updated periodically, Peters says. Under the proposed model, the three core sec- tions would be updated and a new section will be added to address specialization. However, Peters is also quick to state


that the exam “is already long enough; the idea is not to make it longer.” The proposed model would allow


students to demonstrate core competen-


cies as in the past — in disciplines such as accounting, auditing, tax and technology — but then, to demonstrate deeper skills and knowledge, they must choose one of the following specialization disciplines: tax compliance and planning, business reporting and analysis, or information systems and controls. A CPA would not be wed to that specialty after earning a license.


Higher education responds “Technology is changing at a very


rapid pace, and I’m so proud of the accounting profession for embracing this change and continuing to evolve,” says Virginia Tech professor Nadia Rogers, director of Virginia Tech’s accounting and information systems program. “The way in which companies and


public accounting firms utilize technol- ogy to their advantage has significantly changed over the years; therefore, the skillset required of newly hired employees also has changed — and a resulting change in the CPA exam is necessary.” Evolution is necessary so the


accounting profession can continue to uphold its ultimate responsibility of protecting the public’s interest, Rogers says.


She notes that firms are spending


“significant amounts of money” to train their current professionals on technolo- gies used in the CPA industry. And graduates with “the extremely valued combination of technical accounting and technology knowledge” are highly sought after. Virginia Tech now requires students


at both undergraduate and graduate lev- els to take an accounting analytics course focused on critical thinking. “It teaches our students how to


analyze data, visualize data and be able to report the resulting information to users in a very meaningful way,” Rogers says. Christopher Newport University


has changed its curriculum as well, intro- ducing a master’s degree for CPAs during the past two years. “Part of the evolution process is start-


ing to shape up,” says Gabriele Lingenfelter, a CNU professor who teaches auditing, principles of financial accounting and capstone case studies.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64