Cpa's Range

The article, “Substantial Equivalency” discusses the difficulty of practicing accounting throughout different jurisdictions. Many accountants feel they should be able to practice in different jurisdictions without undergoing a time-consuming, unnecessary licensing process in each. To allow CPAs a wider range of professional range and opportunity the Uniform Accountancy Act (UAA) introduced "substantial equivalency" to make sure that all CPAs are licensed and regulated equally regardless of where they practice or who employs them.

The best way to modernize the regulatory process and its costs to ensure that all CPAs are licensed and regulated equally has been a work in progress for more than a decade. The AICPA and the National Association of State Boards of Accountancy (NASBA) began collaborating on substantial equivalency in the mid-'90s releasing the third edition of the UAA in 1998. In December 2005 the forth edition was released with more revisions.

The fourth, post-Sarbanes-Oxley version of the UAA clarifies the definition of substantial equivalency. The forth edition pretty much says, licensed CPAs may practice across state or jurisdictional lines personally or electronically as long as they are in good standing in their jurisdiction of principal residence and meet the education, examination and experience (known as "the three Es") criteria. They notify the new state board of their intent to practice in the jurisdiction and agree to follow its laws and rules and the originating state's licensing qualifications are deemed substantially, equivalent.

Under the joint model UAA, a CPA has the privileges of licensees of the new jurisdiction if he or she consents to its board's disciplinary authority, which can be enforced in either the new location or the CPA's home state if he or she violates any laws while performing services. NASBA's National Qualifications