1. Professional Issues Update
Fall, 2007 Edition
Tom Hood, CPA.CITP
CEO & Executive Director
Maryland Association of CPAs

2. CPA Redux
Re-dux - adj.
brought back,
resurgent

3. “CPAs ARE the DISCIPLINE in
business!”
Jim Collins

4. CPA Redux - What is a Profession?
Professions enjoy a high social status,
regard and esteem conferred upon them by
society. This high esteem arises primarily
from the higher social function of their work,
which is regarded as vital to society as a
whole and thus of having a special and
valuable nature.
Source: Wikipedia

5. CPA Redux - What is a Profession?
All professions involve technical, specialized
and highly skilled work. Training for this work
involves obtaining degrees and professional
qualifications without which entry to the
profession is barred. Training also requires
regular updating of skills.
Maryland CPAs are required to achieve the 4 E’s to qualify for licensure
1. Education – bachelor’s degree + 30 hours
2. Examination – Pass the Uniform CPA Exam
3. Ethics – Maryland requires a separate ethics exam
4. Experience – 1 year of experience working with a CPA
Thereafter, they are required to complete 80 hours of continuing
education every two years, including four hours of ethics training.
Source: Wikipedia

6. Welcome – Tom Foard, CPA
MACPA Chair of the Board

7. Learning Objectives
• CPA Redux – revisit what a CPA is in today’s global
economy
• Gain an understanding of the biggest changes in the CPA
Profession at the international, national, & state levels
• Understand the latest developments in compliance, CPA
licensing and multi-state practice issues
• Identify the major State Legislative & Regulatory threats to
your business and your CPA License and what you can do
about them
• How to manage four generations at work and dealing with
this "new" twenty-something workforce
• What you can do to win the talent war - recruiting &
retaining top talent
• Learn how FASB's new Private Company Financial
Reporting Initiative affects your firm or company

8. First Up: The Big Picture…
• Increased economic globalization
• Growing fiscal pressures on governments
• Escalating health care costs
• Shrinking workforce
• Changing U.S. demographics
• Growing focus on knowledge-based work
• Lightning-fast technological shifts
• The rise of Web 2.0 social media

9. Right now…

10. History of the Profession
IRS
OIG
Regulatory Structure of CPA Profession

11. SOX is the driver…
Editorial Reviews
Book Description
A simple guide to the complex new accounting rules under
Sarbanes-Oxley
CPAs, lawyers, business owners, and corporate
managers of all kinds are currently dealing with the
biggest change in corporate governance since the
1930s. As full implementation of the Sarbanes-Oxley
Act gets under way-bringing large changes in
corporate accounting and disclosure-managers
everywhere need a plain-English guide that explains
the legislation simply and practically. Sarbanes-Oxley
For Dummies provides an implementation framework
for firms as they struggle to come into compliance;
explains key provisions in the legislation; and
identifies specific actions needed to achieve
compliance. In addition, this straight-to-the-point
guide presents a summary of best practices, smart
business policies, and invaluable compliance
checklists.
Jill Gilbert, JD, CPA (Milwaukee, WI) is a former tax consultant, and an
attorney who runs her firm's Sarbanes-Oxley consulting division. She is also
the author of two For Dummies technology titles.

12. 12
500 convictions
30 CEOs

13. The Professions - Top Five Issues
1. Professional Legislation and Regulation
Tax Strategy Patents, Mobility, SOX, Maryland changes
2. Pipeline – Next Generation CPA
Recruitment / Retention / Staffing / Generational Issues
3. Public/Professional Accountability
4. Private Company Financial Reporting
(FASB)
5. Performance
Trends in CPA Firms and Business, Industry,
Government, NFP & Education
So what are we doing about it? –
MACPA’s Agenda

14. Professional Legislation /
Regulation
Professional Legislation /
Regulation
Update
2007

15. What you need to know
• Federal level (congress)
– Tax patents
– SBWOTA of 2007 & new Preparer
Penalties
– Tax-preparer licensing / regulation
(federal & state)
• State Legislation - Maryland
– Sales Tax on Professional Services
– Mobility
– Tax Preparer Licensing and Attack of
Accountants
– Civil Liability Reform

16. Say what?

17. Tax Return Preparer Standards
• Raises reporting standard for preparers
(“more likely than not”) above the standard
for taxpayers (“substantial authority”)
– potential conflicts of interest - preparer & client
– affects nature of representation of taxpayers &
taxpayer’s right to representation.
• “More likely than not” standard results in a
fundamental change in the role of the
preparer
– advocate to advisor.

18. Need to turn back these preparer rules

19. S 2369 – Tax Patents
Major Elements of our legislation
•Allows the granting of patents for tax
strategies
•Immunity from infringement for tax
payers and preparers
•Software carve out
•Allows for continued innovation in
the development of tax preparation
software – TurboTax, TaxCut
•Other Bills – Patent Reform of 2007
•Tax Shelters
UPDATE -Passed HR 1908

20. Sales Tax on Services
March 9, 2007
“Expect states to focus on sales taxes.
They’ll target service Industries…
everything from accounting to beauty
salons…many of which aren’t taxed at all
right now.”

21. Sales Tax on Services
Special interests target
CPA Services – League
of Women Voters &
Progressive Maryland

22. MACPA took a Proactive Approach
MD Chamber Sales Tax Study
• All taxes are not
created equal
• Sales Tax on Services
will costs jobs
• Business is paying its
fair share (and then
some)
• Meet w/ Gov, Speaker,
Senate President, and
Tax writing
Committees before
special session

23. Educate legislators/Mobilize members
Ten Criteria for Evaluating Tax Law
• 1. Simplicity: The tax law should be simple
so that taxpayers understand the rules and
can comply with them correctly and in a cost-
efficient manner.
• 2. Fairness: Similarly situated taxpayers
should be taxed similarly.
• 3. Economic Growth and Efficiency: The
tax system should not impede or reduce the
productive capacity of the economy.
• 4. Neutrality: The effect of the tax law on a
taxpayer’s decisions as to how to carry out a
particular transaction or whether to engage in
a transaction should be kept to a minimum.
• 5. Transparency: Taxpayers should know
that a tax exists and how and when it is
imposed upon them and others.
State Tax Committee Chair Bev Richard & Andy
Bareham on tour to inform MACPA members

24. Educate legislators/Mobilize members
Ten Criteria for Evaluating Tax Law
• 6. Minimizing Noncompliance: A tax should
be structured to minimize noncompliance.
• 7. Cost-Effective Collection: The costs to
collect a tax should be kept to a minimum for
both the government and taxpayers.
• 8. Impact on Government Revenues: The
tax system should enable the government to
determine how much tax revenue will likely be
collected and when.
• 9. Certainty: The tax rules should clearly
specify when the tax is to be paid,how it is to
be paid, and how the amount to be paid is to
be determined.
• 10. Payment Convenience: A tax should be
due at a time or in a manner that is most likely
to be convenient for the taxpayer.

25. 70 + Bills in special session
How do you win?
• 4 MACPA Committees
– Legislative Executive Committee
– CPA Committee for Political Action
– State Tax Committee
– Board of Directors
• Inform & mobilize members
– CPA Legislative Insider
– Keyperson alerts
– E-mail
• Activate Grassroots
– 300 + letters & e-mails

26. Tax Reform Act of 2007
• Sales Tax increase to 6%
• Sales Taxes expanded to computer consulting
• Corporate Income Tax Rate from 7% to 8.25%
• Extensive new reporting requirements (2007)
• Individual Income Tax Rates new brackets
– 5.00% for $200,000
– 5.25% for $350,000
– 5.50% for $500,001 and up
• Increase in car titling tax to 6%
• Tobacco Tax + $1.00 per pack
UPDATE – Defeated SalesTax on CPA services!

27. MD Rate 11.5%
What would happen if we weren’t there?
UPDATE – Defeated SalesTax on CPA services!
"There's no strong voice of landscaping, computer services and arcade
owners. …that's one of the reasons they got picked.”
- former Senator Barbara Hoffman
"An old adage among politicians
is that if you don't holler at tax-
raising time, you'll get hurt." –
Lou Panos

28. State Boards of Accountancy:
Regulation of Interstate Practice
• TREND: Aggressive application and
enforcement by some states
• TREND: Historic agreement & effort by
NASBA, AICPA, State CPA Societies
• Only 4 States with real mobility (OH, VA, WI
& MO) at start of 2007
• New Principles of UAA:
– No notification
– No fees
– No add-on requirements
– Automatic jurisdiction over licensee

29. Mobility

30. WA
OR
CA
NV
ID
MT
ND
SD
WY
UT
CO
AZ
NM
AK
HI
TX
OK
KS
NE
MN
IA
MO
AR
LA
MS
AL GA
FL
WI
IL
MI
IN
KY
TN
SC
NC
VA
WV
OH
PA
NY
VT
ME
NH
MA
RI
NJ
DE
MD
CT
The Start of 2007 Sessions (December 2006)
DC
Mobility
Mobility & Practice Privilege

31. WA
OR
CA
NV
ID
MT ND
SD
WY
UT
CO
AZ
NM
AK
HI
TX
OK
KS
NE
MN
IA
MO
AR
LA
MS
AL GA
FL
WI
IL
MI
IN
KY
TN
SC
NC
VA
WV
OH
PA
NY
VT
ME
NH
MA
RI
NJ
DE
MD
CT
Looking Forward to ‘08
DC
Legislative ActionMobility Board Support
NH
Mobility First Steps Targets for 2008
Safe States: MO, OH, WI, VA, TX, LA, TN, IL, RI, MN, IN

32. Next Steps in Maryland
State Board of
Public Accountancy
voted to support
Section 23 of UAA
Get bill sponsor
• Seek approval from
Secretary Perez &
DLLR (in progress)
• Introduce in Jan, 08
• Mobilize grassroots
Montgomery County CPAs
meet with Delegate Brian
Feldman (third from left) to
discuss private sponsorship
of mobility legislation

33. Maryland Tax Preparer licensing
This bill would create a MD Certified / Licensed Income Tax Preparer

34. Tax Preparer Licensing
• This letter was sent to MACPA by
concerned members
• Beware of misinformation by
unlicensed Accountants (MSA)
• Their agenda is showing…

35. •The current licensing of P.A.s results in a second tier
professional that is not functionally different than a CPA
• The public would benefit from the licensing of a second
tier of accounting professional who has proven ability
through education, examination, ethics and experience,
but is more limited in their scope of practice than a CPA.
• The second tier of licensing would be more meaningful
to the public and give them a true choice in the matter of
choosing a professional.
Tax Preparer Licensing – version 2.0
Oklahoma – HB 1752

36. Tax Preparer Licensing – Risk to CPAs?
Unlicensed Accountants
Unlicensed accountants are using tax preparer
legislation as step to second-tier accounting license.
Accredited
Business
Accountant
Alert to State CPA Society Executives:
CPA
VS

37. • Problems with Licensing Tax Preparers
– Costly
– Confusion of public with CPA services
that have higher public interest
– May not stop unethical/illegal preparers
• Continuing work with consumer group &
state to find reasonable approach
– Consumer education approach
– Protect low-income taxpayers
– Emphasis on enforcement first
– More fiscally responsible
• Already Successful in …
– Exempting CPAs from any proposed
licensing & CPE requirements, and
– getting a seat on the proposed State
Board
Our Approach – Consumer Education
Protect the CPA License & Public Interest

38. MACPA & the State Board
MD Regulations – uniformity & simplicity
 CPA Self-study requirements modernized & uniform
 CPE for Peer review – effective 12/01/07
 CPA Exam Educational Requirements
 Meeting held with educators – May 5, 2007
 Proposal voted by board
 Published in MD Register – comments due by 11/15/07
 Should be effective as of January 1, 2008
 Mobility technical corrections – Proposed for 2008
 4 in 10 (removing out-of-state requirement)
 Educational Requirements retroactive for reciprocal
Update

39. PipelinePipeline
2007
ISSUE
• Staff Shortage
• Generational Issues
• Talent Management
• Training Trends
• Training Opportunities

40. Demand Continues to be Great
The need for CPAs in the U.S., post-
Sarbanes-Oxley, is at an at all-time high,
resulting in aggressive competition between
firms and companies for their services.

41. a CPA
Accounting is Hot!
• Accounting is the new No. 1 major
on college campuses
– Publication: Central Penn Business Journal: Date: May 13, 2005
• Based on the number of college freshmen who are
making it their career choice, accounting is the new
'sexy' college major. Yes, accounting.
– 2005 survey: National Association of Colleges and Employers.41

42. And CoolAnd Cool
CPA – Cool People Apply

43. Staff Shortage + Four Generations in
workplace = Trouble!
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
Matures Boomers X'ers Millenials
Staff
Shortage

44. Another view…

45. Generational Differences
45

46. Four Generations in the Workplace
• Matures – 1909-45
• Boomers – 1946-64
• Gen X – 1965-80
• Millennials - 1981
+ up (Y2K, Netgen,
Echo-boom,
Gen Y)
Which one are you?
Issue: Generation Differences

47. The Matures (born prior to 1946)
• Duty, honor, country
• Dedication, sacrifice
• Conformity, blending, unity – “We First”
• Patience
• Hard, hard times then prosperity
• National pride
• Doing a good job was most important
• Age = Seniority

48. The Baby Boomers (’46 to ’64)
• Work ethic = Worth. “Workaholic”
• Competitive
• Success is largely visible – trophies,
plaques, certificates, etc.
• Optimistic
• Consumers
• Defined by their work
• We are the world, We are the children

49. Generation X (’65 to ’79)
• Question authorities.
• Their heroes are people they’ve met; that they know.
• Raised as their parent’s friends.
• Saw lifelong employment end – don’t believe it will
happen to them.
• Can be cynical. Can be pessimistic.
• Time horizons are shorter than the Boomers or
Matures.
• Time is a currency.
• Carpe Diem approach – Seize the day!
• “Prove it to me.”

50. Millennials (Since 1980)
• Individuals w/ a group orientation (team?)
• Optimistic
• Programmed. Coddled. Well looked after.
• Hard time focusing on anything.
• Busy & stressed at a young age.
• Like “X”, raised as their parent’s friends.
• Are not adults. Are not adolescents.
“Adultolescent” phase.
• “Future” is very short term.
• Huge goals. Clueless on the execution.

51. The way it is supposed to work…
• A senior generation assumes they
know what the younger generations
want (or should want) for themselves;
how they should define “success.”
• The senior generation then prescribes
a “pay your dues” process to achieve
that “success.”
• The senior generation thinks, in the
back of their mind, that the younger
generations will never have to work as
hard as they did to become
“successful.

52. Consider the following:
“What happens when generations define success differently?”
“How do the conflicting definitions of success affect how we
motivate, coach and encourage in the workplace?”

53. What the New/Young Professional is saying
The Context Map was used to capture the trends and issues facing
the New / Young Professional.
Staff Shortage + generational differences = crisis

54. And they get it…
If I were managing partner…
• Invest in training whole firm on consultative
selling
• Change expectations – make the
investment in people and training
• Supervisory training & Conflict resolution
• Get the wrong people off the bus
• Fire the “D” clients to match resources with
workload
• Implement specialization to give us better
focus and client service Source: MACPA
Leadership Academy
Participants, Sept, 2006

55. Critical
Turning
Point
Success
Factors
in
H
igh
Perform
ance
O
rganizations

56. Top 20 Reasons to Stay with a Firm
AICPA PCPS

57. Retention and Recruiting -
Bottom Line
• They want to be “engaged” in the firm mission ,
vision and values.
• They want to be more involved with the client
• They are accustomed to real time
communication
• They want career growth opportunities and
greater clarity of what it looks like
• They want personalized “one fits one” policies
• They want interesting, challenging projects

58. Tom’s Top 5 Workplace Tips
1. Be the right person – versus the right
organization
2. Be specific and don’t assume anything
3. Define roles and career path (in easy
increments and steps)
4. Invest in training – it has high ROI, and is
a retention tool
5. Offer challenging work and reward even
small steps

59. According to the Generational Experts
“It’s easy to say that these simple
demonstrations shouldn’t be necessary.
Many people say that employees should
enter the workforce ready to work. Blame
the parents, the schools, the media or
something else. But that won’t change the
outcome”
“So deal with it”
Motivating the “What’s In It For Me” Workforce
- Cam Marston

60. Public /
Professional
Accountability
(Standards)
Public /
Professional
Accountability
(Standards)
2007
ISSUE

61. Lots of changes on the horizon…
• AS 5 - PCAOB
• IRFS – SEC International gets legs
• XBRL – SEC mandatory?
• Codification Project – FASB
– Convergence with international
• Clarity Project – ASB
– Convergence with international
– Risk-based standards already in int’l format
(SAS 104-111)
• SAS 112 Communication
• Internal Control – COSO
• Fin 48

62. Standards Convergence

63. PCIE Report - OMB A-133 single audits
“Based on numbers of audits, the results
show significant percentages of
unacceptable audits and audits of limited
reliability.”
1. Revise & improve
standards & guidance
2. Establish minimum
requirements on training
(16-24 hours CPE)
3. Processes to address
unacceptable single
audits
4. Next up GAO study
Failed

64. CPA Profession in the spotlight

65. International

66. Private
Company
Financial
Reporting
Private
Company
Financial
Reporting
2007
ISSUE

67. Big GAAP – Little GAAP?
67

68. Private Company Financial Reporting
www.pcfr.org
http://www.pcfr.org

69. PCFRC’S Agenda for Existing GAAP
• FIN 48
• FIN 46R
• FASB 123R
• FIN 48 was selected first because of the upcoming
effective date.
Recommendation - The PCFRC recommends that
the FASB delay the effective date of FIN 48 for
private companies. The effective date should be
delayed until 1) clarification and guidance is issued
on FIN 48’s for pass-through entities, and 2) further
consideration is given to the usefulness of FIN 48’s
disclosure requirements for private companies.
Further, this delay will allow for a higher level of
awareness and education about FIN 48.
APPROVED

70. Performance
Trends & Issues
Performance
Trends & Issues
2007
ISSUE

71. IPA Consultant Predictions – Jan 2006
• “An increase of larger firms will result from
an increase in mergers. Accounting firms will
look more like law firms in terms of size.”
-Marc Rosenberg
• “There will be more large firms.” – Marc
Rosenberg
• “Mergers and acquisitions will increase.” –
Jeff Pawlow, The Growth Partnership
Trends Facing CPA Firms

72. PCPS / TCPS 2007 MAP Survey
1. Tax complexity &
changes
2. New regulations &
standards
3. Keeping up with
standards
4. Keeping up with
Technology
5. Work/Life Balance
1. Finding qualified
staff
2. New regulations &
standards
3. Tax complexity &
changes
4. Keeping up with
standards
5. Retaining staff
Sole Practitioners Firms 2 to 5

73. PCPS / TCPS 2007 MAP Survey
1. Finding qualified
staff
2. New regulations &
standards
3. Retaining Staff
4. Keeping up with
standards
5. Succession
planning
1. Finding qualified
staff
2. New regulations &
standards
3. Retaining Staff
4. Succession
planning
5. Developing new
partners
Firms 6 to 10 Firms 11 to 20

74. PCPS / TCPS 2007 MAP Survey
1. Finding qualified
staff
2. Retaining staff
3. Developing new
partners
4. Work . Life
balance initiatives
5. Management of
human resources -
workload
Firms 21 or more Running these firms is like…

75. Top Ten Issues facing Large CPA firms
• Finding and retaining
quality staff
• Succession planning
• Attaining and managing
growth
• Technology
implementation
• Training
• Leadership development
• Profitability
• Client retention and
development
• Government regulation
• Risk management
Source : Inside Public Accounting – January, 2007

76. Top 5 Issues facing CPAs in
Business & Industry
1. Lack of Time
2. Standards & Regulatory Overload
3. Staff Shortage
4. Dealing with Technology
5. Competition & the Speed of Business

77. Top Five Issues facing their companies
77

78. Managing Financial Statement Preparation and Auditor Relations: In your opinion,
has the service provided by your firm’s auditors in each of the following areas,
improved, worsened or stated the same since accounting reforms of recent years?
78
Improved Same Worse Don’t know
Quality of work 39% 52% 1% 8%
Communication and/or
responsiveness to the audit
team
34% 56% 1% 9%
Interpretation of accounting
regulations 30% 59% 3% 8%
Tactical implementation 29% 61% 1% 9%
Strategic Guidance 27% 62% 2% 9%
Ability to adequately staff
engagements 22% 67% 2% 9%
CFO – Auditor relations
Public Accounting firms are improving

79. Overwhelmed?
• Maybe you need “Breathing Lessons”
– How CFOs can thrive under pressure
• “CFOs today find themselves scrambling in
more directions than a good bartender on
New Year’s Eve. And no wonder,
pressures for accountability and
performance have never been higher.”
• Lesson # 4
– “Focus on specific decisions that must be made
then work backward to determine what
information you need”
79

80. Business & Industry CPA
Hats in the Belfry
Courtesy of Tom Foard

81. The Four Faces of Finance

82. Business & Industry & NFP
• SAS 104-111 & SAS 112
• New Risk-Based standards will
change audits – significantly
• Webcast scheduled for mid-December
• Townhall resource page has SAS 112
toolkit
• Get up-to-speed on internal control
(COSO), etc.

83. Emerging Trends / Issues
• Enterprise Risk Management
• LEAN Accounting
• Supply Chain Management
• GREEN / Sustainability
• Enhanced Business Reporting / SEC
Simplification

84. AICPA Top 10 Technologies
84
1. Information Security Management
2. Identity and Access Management
3. Conforming to Assurance and Compliance
Standards
4. Privacy Management
5. Disaster Recovery Planning and Business
Continuity Management
6. IT Governance
7. Securing and Controlling Information Distribution
8. Mobile and Remote Computing
9. Electronic Archiving and Data Retention
10. Document, Content and
Knowledge Management
NE
W
NE
W
NE
W
NE
W
THIRD YEAR AT #1

85. What is XBRL?
• eXtensible Business Reporting Language
• International platform for business reporting
• An information standard that enhances the quality and efficienc
of business information for internal and external consumers
• Supply chain understanding of a standardized way to
communicate business information
• Provides information with identity and context that can be
understood by a range of software applications allowing
seamless interface with databases, business reporting systems
and spreadsheets
• Can be used to enhance compliance processes
85
Special session on XBRL at Maryland Business &
Accounting Expo on June 17 & 18, 2008
Baltimore Convention Center

86. XBRL:
The Bar Code of the Business Reporting World
Efficiency
Savings
Quality
86

87. XBRL: What can you do?
• Educate yourself and your team
– XBRL conferences and sessions
– Talk with others who have implemented
• Investigate/target process areas
• Develop Project plan and ROI
assessment
• Assess tooling needs, availability, fit
• Implement and assess cost/benefit
realities87

88. Web 2.0 is here…

89. “Web 2.0 generally refers to a second generation of
services available on the WWW that lets people
collaborate and share information online.” - Wikipedia.com
Shared Pictures =
Shared Knowledge =
Shared Bookmarks =
Shared News =
Shared Videos =
Shared Everything =
Web 2.0 & You

90. Web 2.0 continues to grow
Try this professional networking site
Coming Soon – MACPA training on Web 2.0
www.linkedin.com

91. MACPA has a Second Life…
CPA Island

92. Connect - MACPA Blogs, listservs
• www.cpasuccess.com
• www.newcpas.com
• www.cpalegislativeinsider.com
Using Web 2.0 to
connect and inform our
members and connect to
the next generation CPA
Fed & state tax, PFP, practice &
industry, & NFP listservs
Subscribe by
E-mail here

93. What is your
Association doing
about this?
Connect – Protect -
Achieve
What is your
Association doing
about this?
Connect – Protect -
Achieve
2007
ISSUE

94. Promoting the CPA License!
Filling the pipeline…
1. Student members
2. CPA Candidates
3. New/Young Professionals
4. Leadership Academy
1.
Recruit
Students
2.
Promote
CPA
License
4.
Fast
Track
Career
3.
Build
CPA
Skills
Issues addressed:
•Retention
•Recruitment
•Succession Planning
•Leadership
•Staffing
•Generational Issues

95. 1. Student Members
www.tomorrowscpa.org

96. Student Recruitment is paying off!
www.cpasuccess.com

97. 2. Promote the CPA license
The “New” CPA Exam

98. 2. Promote the CPA license
• 150 Hours of Education
• Group I – 27 semester hours in
accounting subjects
– Auditing (3 hours)
– Managerial Accounting (3 hours)
– US Federal Income Tax (3 hours)
– Financial Accounting (9 hours)
– Accounting Electives (9 hours)
Maryland Educational requirement
Uniform & Flexible

99. 2. Promote the CPA license
• Group II - 21 semester hours in business subjects
(at least five of the following subjects:
– Economics
– Statistics
– Corporation or business finance
– Management
– US Business Law
– Marketing
– Business Communication
• Ethics – Business, accounting, philosophy of ethics
or a course that examines a framework for ethical
decision making
Uniform & Flexible
Maryland Educational requirement

100. What are the four parts of the “new” CPA
Exam?
1. Auditing & Attestation
2. Business Environment Concepts
3. Financial Accounting & Reporting
4. Regulation
The “New” CPA exam
update

101. CPA Exam changes
• Paper-based
• 2 x year May &
November
• 5 sections
• Computerized
• Anytime
• 2 months per quarter
• Pass all sections in
18 months (to keep
passed sections)
• 4 sections
• 70% new content!
Then: Now:
update

102. 2. Promote the CPA license
Next date : June 17, 2008
At the Maryland Business & Accounting Expo
Maryland DLLR Swearing-in of new CPAs

103. Swearing-in Ceremony

104. What you can do to promote the CPA?
• Understand the “new” CPA Exam
• Encourage MACPA candidate
membership
• Use CPA Exam tracking tool to track
employees progress
• Support the swearing-in ceremony
• Create / reinforce firm/company
culture that celebrates CPAs

105. 3. New / Young Professionals
NYPN All member holiday party
Maryland Zoo (in Baltimore)
December 13, 2007 6-10pm
“CPE - Certified Penguin Extravaganza”

106. Defeated Sales Tax on Services 5x
Defeated Comparative Fault Legislation 13x
Defeated Tax Preparer Licensing
Defeated Increases in Filing Fees 3x
Prevented MD SOX for private cos. - SB 560
Passed Separate Funding for our State Board
Passed Mandatory Peer Review &
Regulations
Passed Ethics CPE Requirement
Connect – Protect - Achieve
Why we need a seat at the table?
Come help us “holler”
“An old adage among politicians is
that if you don't holler at tax-raising
time, you'll get hurt." - Lou Panos

107. • Numbers Count – 188 Legislators
• Regulators in “hyper-active” mode
• 2,000+ bills in 90 days
• Other State Activity aimed to correct problems in
accounting profession
• Special interests targeting CPAs
• Federal, State, Regulatory levels are all active
CPA Day in Annapolis – January 23, 2008
Protect - Legislative Advocacy
“our best defense is a strong offense”
“No man’s life, liberty or
property are safe when the
legislature is in session.”
- Mark Twain

108. 2008 Advocacy Agenda
• Stopping Sales Tax on
Services
• Preventing Trial Lawyers from
making it easier to sue CPAs
& Business
• Preventing unnecessary Tax
Preparer Licensing
• Enabling your right to
interstate practice - Mobility –
Section 23 of UAA
http://www.cpalegislativeinsider.com/
Keep up-to-date with our legislative insider blog:

109. Connect - Financial Literacy –
Promoting the CPA
• Financial Fitness calendars
• Serving those who serve – National Guard
• Taxpayer Questions
• Legislative Tips

110. Protect your license &
Differentiating the CPA
• BBJ Supplement
• Smart CEO
• Articles & PR
• Managing our Brand

111. Connect – you to your Profession
• CPA Communities – Chapters, Committees, New
Young Professionals, Tomorrow’s CPAs, Task
Forces
• Professional Development – public and in-house,
technical to executive development
• Updates – e-newsletter, Statement, Web, member
call center
• Business & Industry Conference
• Annual Meeting
• CPA Day
• Quality – Ethics & Peer Review
• Swearing-in Ceremony for New CPAs
June 17, 2008 Baltimore Convention Center

112. Achieve Success –
Compliance & Reliance
NASBA CPE Tracker
Skills for the CPA of the Future -
Leadership, Strategic & Critical
Thinking, Focus on the Customer,
Client & Market
“MACPA leads
the nation in on-
site custom
training for
CPAs”
- John Toman
VP AICPA
Multiple jurisdiction CPEOn-site Training

113. Achieve! Top CPE in Nation
• Maryland Business &
Accounting Expo – 16
hours of CPE - $250
• MACPA1040 Fast Track
“it’s better than Gear-Up!”
• Self-study – AICPA
CPE Express

114. Achieve! Member resources
MACPA’s Trusted Partners
• Provident Banking
• RJP Insurance
• AON
• Purchasing Power of the profession
– Savings of up to 70% off!

115. CPA Redux - the Maryland CPA!

116. What STuck out
for you?
Questions & Discussion
Learning Questions
Feedback Form

117. MACPA Connect-Protect-Achieve!
Fast tracking your road to success

118. Resources from today’s program
Available at www.macpa.org
• MACPA’s Town Hall Resource Page
http://www.macpa.org/Content/Content/23456.aspx
• Websites & Blogs
www.tomorrowscpa.org (high school & college students)
www.bizlearning.net (On-site catalog of programs)
• MACPA’s Blogs
www.cpasuccess.com CPA Success tips
www.newcpas.com Fast Track your career here
www.cpalegislativeinsider.com Legislative/Regulatory news
www.cpaisland.com CPAs on Second Life

119. Save these dates…
• Technology Conference – December 3, 2007
• Don farmer Tax Update – December 6, 2008
• Member Holiday Party – December 13, 2007
Maryland Zoo in Baltimore
• CPA day in Annapolis – January 23, 2008
• Maryland Business & Accounting Expo – June
17 & 18, 2008
• MACPA’s Fast Track 1040 Tax – get in “high
gear” next year!

120. Tom Hood, CPA.CITP
CEO
Maryland Association of CPAs
Business Learning Institute
(443) 632-2301
tom@macpa.org
www.macpa.org
www,bizlearning.net