Press Releases

Nazareth CPA Testifies Before Pa. House Committee

Sole Practitioner Concerned Over Proposed Changes in Law

PHILADELPHIA – Susan D. Jarvis, a certified public accountant from Nazareth, Pa., shared her concerns regarding the accounting profession in Pennsylvania in testimony before members of the Pennsylvania House of Representatives Professional Licensure Committee this week at the University of Pennsylvania. The House and Senate are reviewing proposed legislation to change the CPA Law.

Jarvis, vice president of Pennsylvania Institute of Certified Public Accountants, strongly discouraged a proposal that would exempt certain CPA firms and individuals from peer review requirements. Currently, the majority of CPA firms that provide reviews or audits are required to undergo a peer review every three years, except for a few firms that qualify for extending the requirement to five years. Pending legislation would expand the number of firms eligible for the five-year carve out based upon number of engagements and gross receipts of clients. Jarvis believes that not holding every firm and individual practitioner to the same stringent code would be detrimental to both CPAs and consumers.

Another element of the pending legislation would increase the educational requirements for prospective CPAs from 120 to 150 semester hours, matching the requirement established in 48 of the 55 U.S. CPA licensing jurisdictions. Meeting this higher standard would help Pennsylvania-licensed CPAs practice across state lines in a more efficient manner.

“Business realities -- such as increasing interstate commerce and virtual technologies -- require a uniform system that allows for fluid practice across state lines,” Jarvis said. “Lack of a uniform system adversely affects business, consumers, and CPA firms of all sizes. It is a significant barrier to consumer choice.”

Founded in 1897, the Pennsylvania Institute of Certified Public Accountants is a professional association of more than 19,000 CPAs who work in public accounting, industry, government, and education. PICPA is the second-oldest state CPA organization in the United States. To find a member CPA in your area, visit our Web site at www.picpa.org and click on CPA Locator. Students and educators can visit PICPA's specially designed site www.CPAzone.org to get the latest information about careers in accounting and the CPA profession.