State Accountancy Regulation Enforcement Agreement

October 15, 2006

Comment: As is more fully explained below, although this compact is styled as an act of a state legislature, formal statutory enactment is probably not necessary under most states’ accountancy acts. Most states as well as the Uniform Accountancy Act have laws already allowing state boards of accountancy to cooperate with other states in the administration and enforcement of accountancy regulations. Thus, many states could approve this compact by state board approval.

Accountancy regulation enforcement cases involving more than one state are becoming more numerous. As states allow greater licensee mobility, the number of disciplinary matters involving more than one jurisdiction will inevitably increase. Transborder cases, where a CPA is physically located in one state but the victim resides in another state, and multistate cases, where the harm directly impacts persons in more than one state, present unique challenges to the state boards involved. Also, transborder cases involving the unauthorized practice of accountancy and the illegal use of the CPA title via the internet may pose enforcement problems. A multistate enforcement compact offers a solution for these complex issues involving state accountancy regulation boards.

See Full Document:State Accountancy Regulation Enforcement Agreement