Sunset review of the Arizona State Board of Accountancy

              ARIZONA STATE SENATE
RESEARCH STAFF
TO: THE JOINT LEGISLATIVE AUDIT COMMITTEE
REPRESENTATIVE JOHN HUPPENTHAL, CHAIRMAN
SENATOR ROBERT BLENDU, VICE CHAIRMAN
DATE: November 29,2004
SUBJECT: Sunset Review of the Arizona State Board of Accountancy
KIM MARTINEAU
ASSISTANT LEGISLATIVE
RESEARCH ANALYST
Telephone: (602) 926-3171
Facsimile: (602) 926-3833
RECEIVED
DEC - 3 2004
SPEAKER'S OFfiCe
Attached is the final report of the sunset review ofthe Arizona State Board of Accountancy, which
was conducted by the Senate Commerce and House of Representatives Commerce and Military
Affairs Committee of Reference.
This report has been distributed to the following individuals and agencies:
Governor of the State of Arizona
The Honorable Janet Napolitano
President of the Senate
Senator Ken Bennett
Senate Members
Senator Barbara Leff, Co-Chair
Senator Marsha Arzberger
Senator Robert Blendu
Senator Dean Martin
Senator Victor Soltero
Speaker of the House of Representatives
Representative Jake Flake
House Members
Representative Michele Reagan, Co-Chair
Representative Ted Carpenter
Representative Debbie McCune Davis
Representative Doug Quelland
Representative Wally Straughn
Arizona State Board of Accountancy
Office of the Auditor General
Department of Library, Archives & Public Records
Senate Majority Staff
Senate Research Staff
Senate Minority Staff
Senate Resource Center
House Majority Staff
House Research Staff
House Minority Staff
Chief Clerk
Senate Commerce and
House ofRepresentatives Commerce and Military Affairs
Committee ofReference
ARIZONA STATE BOARD OF ACCOUNTANCY
Background
The Joint Legislative Audit Committee (JLAC) assigned the sunset review of the Arizona State
Board of Accountancy to the Senate Commerce and House of Representatives Commerce and
Military Affairs Committee ofReference (COR). Pursuant to A.R.S. § 41-2954, the COR completed
the sunset review.
The Arizona State Board of Accountancy (ASBA) was created in 1919 to establish and enforce
standards of qualification and accounting practice for certified public accountants (CPA), public
accountants (PA) and accounting firms. The primary purpose of the ASBA is to protect the public
from unlawful, incompetent, unqualified or unprofessional CPAs or PAs through certification,
regulation and rehabilitation.
ASBA meets this charge by examining and certifying individuals to practice as CPAs and registers
accounting firms owned by CPAs. ASBA administers the uniform examination of the American
Institute ofCertified Public Accountants as part ofits examination requirements and requires CPAs
and registered accounting firms to renew their certificates every two years. ASBA investigates
complaints concerning compliance by CPAs and accounting firms and issues appropriate disciplinary
action.
ASBA is comprised ofseven Governor-appointed members as follows: five members holding valid
certificates issued by ASBA, with at least three ofthe members in an active public practice as a CPA,
and two non-certified public members with experience in using accounting services. Members are
appointed to five-year terms and are each eligible to receive $100 for each day or part ofa day spent
fulfilling official ASBA duties. ASBA employs an executive director to carry out its daily duties.
ASBA has five committees that assist it with policy development, maintenance ofstandards and the
disciplinary process, and make recommendations for ASBA decisions. The Accounting and
Auditing Standards Committee and the Tax Practice Committee are primarily concerned with
complaints and disciplinary proceedings. These committees can recommend to ASBA correction of
practices, continuing education to improve skills, repayment for financial harm, suspension or, in
extreme cases, revocation of a license. The committees can also find that there is no basis for the
complaint and recommend dismissal to ASBA. The Certification Advisory, Continuing Professional
Education, and the Law Review committees develop policies and standards that are then approved by
ASBA.
ASBA is funded by revenue collected from certification of CPAs, PAs and accounting firms, and
from fees. It is required to deposit 90 percent ofits monies collected into the Board ofAccountancy
Fund. The remaining 10 percent, including civil penalties, are deposited into the state General Fund.
A.R.S. § 41-3005.10 stipulates ASBA is to terminate on July 1,2005.
COR Sunset Review
The COR held one public hearing on Thursday, November 18, 2004, to review ASBA and take
testimony. Frank Brady, Chairman ofASBA, gave remarks, and Valerie Elliott, Executive Director
of ASBA, gave a presentation on ASBA, focusing on how ASBA has implemented
recommendations made by the Office ofthe Auditor General in September of 1999 for their previous
sunset review.
COR Recommendations
The COR recommends that the Arizona State Board of Accountancy be continued for ten years.
Attachments
1. Sunset report requirements pursuant to A.R.S. § 41-2954, subsections D and F
2. Meeting Notice
3. Minutes of Committee of Reference Hearing
KM/ac
".....
ARIZONA STATE BOARD OF ACCOUNTANCY
100 N. 15th Avenue, Suite 165 Phoenix, Arizona 85007
Phone: (602) 364-0804 Fax: (602) 364-0903
www.accountancy.state.az.us
September 1, 2004
Senator Barbara Leff
Chair, Commerce Committee of Reference
Arizona State Senate
1700 West Washington
Phoenix, Arizona 85007
Representative Michele Reagan
Arizona House of Representative
1700 West Washington
Phoenix, Arizona 85007
Re: Sunset Review Report
Dear Senator Leff and Representative Reagan:
The Arizona State Board of Accountancy ("Board") hereby respectfully submits
its Sunset Review Report, which addresses the factors listed A.R.S. § 41-2954.
1) The objective and purpose of the agency.
As stated by the legislature, the Board exists to "ensure that the public is
protected from the incompetent practice of accountancy." Laws 2000 (2nd Reg.
Sess.), Ch. 120, § 4. The Board meets this charge by establishing and enforcing
qualifications and accounting standards for certified public accountants, public
accountants and accounting firms registered by the Arizona State Board of
Accountancy. The Board examines and certifies individuals to practice as
certified public accountants (CPAs) and registers accounting firms owned by
CPAs. The Board requires CPAs and registered accounting firms to renew their
certificates every two years. The Board investigates complaints concerning
compliance by CPAs and accounting firms with statutes and rules, determines if
a violation of the law has occurred and issues appropriate disciplinary action.
The Board answers and provides information to members of the public regarding
CPAs and accounting firms.
2) The effectiveness with which the agency has met its objective and purpose
and the efficiency with which it has operated.
The performance measures reported each year to the Office of Strategic
Planning and Budgeting and the Joint Legislative Budget Committee reflect the
Board's effectiveness in meeting its objective and purpose. In fiscal year 2004,
American Disability Act: Persons with disabilities may request reasonable accommodations, such as sign language
interpreters. Requests should be made as early as possible to allow time to arrange the accommodation.
This document is available in an alternative format upon request.
Page 2 of 8
September 1, 2004
Letter to Senator Left & Representative Reagan
the Board granted initial certificates to 527 individuals, registered 86 new
accounting firms, and processed approximately 4,900 renewals for ePAs and
accounting firms. The Board processes all applications for certification within the
timelines set forth in rule and generally processes renewals within one day.
The proactive effort by the Board in regulating ePAs and accounting firms is
reflected in the enforcement actions take over the last five years, including but
not limited to, the Arthur Andersen/Baptist Foundation of Arizona investigation in
which investors received restitution. In fiscal year 2004 alone the Board issued
21 administrative letters of concern, which are non-disciplinary and confidential,
that serve as a tool to educate ePAs about alleged but unproven concerns and
areas of suggested practice improvement. With respect to disciplinary action
against ePAs and accounting firms, the Board revoked 10 certificates, entered
into 24 decision and orders by consent and filed four injunctions against
individuals illegally using the ePA designation in the last fiscal year. Examples of
the Board's investigations included, fraudulent activities, violations of
professional accounting standards that occurred on audits of private held and
public companies, ePAs who failed to cooperate with the Board during an
investigation, ePAs convicted of felonies, and violations of professional
accounting standards in the preparation of tax returns. The Board issued
appropriate discipline to ePAs and accounting firms in these cases.
3) The extent to which the agency has operated within the public interest.
The Board operates under a philosophy that the protection of the public is the
primary purpose for its existence and is accomplished by regulating those who
fall under its jurisdiction. It serves the public interest by ensuring that only those
satisfying the education, experience and examination requirements are certified
as ePAs. Additionally, the Board registers accounting firms that meet all
requirements established by law or rule. Once properly certified or otherwise
registered with the Board, then compliance of Board statute and rules is
advanced through education and enforcement.
4) The extent to which rules adopted by the agency are consistent with the
legislative mandate.
The Board's rules contain their foundation in statute and are consistent with not
only the legislative mandate, but also with the Board's mission.
5) The extent to which the agency has encouraged input from the public before
adopting its rules and the extent to which it has informed the public as to its
action and their expected impact on the public.
The Board ensures that all proposed rulemaking efforts are open and available to
the public by publishing required notices in the Arizona Administrative Register,
posting proposed rules on its website and holding public meetings during the rule
Page 3 of 8
September 1, 2004
Letter to Senator Left & Representative Reagan
making process. Also, as required, proposed rules are sent to all interested
parties who have made their requests known to the Board.
6) The extent to which the agency has been able to investigate and resolve
complaints that are within its jurisdiction.
The proactive effort by the Board in regulating CPAs and accounting firms is
reflected in the enforcement actions take over the last five years, including but
not limited to the Arthur AndersenlBaptist Foundation of Arizona investigation.
The Board has allocated extensive resources to the regulation of the profession,
which is evident in the Board's budget. In fiscal year 2004, the Board issued 21
administrative letters of concern, revoked 10 certificates, entered into 24
Decision and Orders by Consent and filed four injunctions against individual
illegally using the CPA designation. Examples of the Board's investigations
included, fraudulent activities, violations of professional accounting standards
that occurred on audits of private held and public companies, CPAs who failed to
cooperate with the Board during an investigation, CPAs convicted of felonies,
and violations of professional accounting standards in the preparation of tax
returns. The Board issued appropriate discipline to CPAs and accounting firms
in these cases. (See attached table of disciplinary actions from 2000 - present)
7) The extent to which the Attorney General or any other applicable agency of
state government has the authority to prosecute actions under the enabling
legislation.
The enabling legislation provides the Board with the necessary authority to
prosecute CPAs and accounting firms under its jurisdiction through the Office of
the Attorney General.
8) The extent to which the agency has addressed deficiencies in its enabling
statutes that prevent it from fulfilling its statutory mandate.
The Board has established a Law Review Advisory Committee, which is charged
with monitoring and assessing laws and rules. The Committee meets throughout
the year to review the Board's statute and rules to ensure that they are
appropriate for the Board to carry out its statutory mandates. During the 2003
spring legislative session, the Board sought and achieved legislation
strengthening its ability to accomplish their mission, including statutory authority
to create a peer review program. Laws 2003 (1 st Reg. Sess.) Ch. 82.
9) The extent to which changes are necessary in the laws of the agency to
adequately comply with these factors.
To the Board's knowledge, there are no significant changes required.
Page 4 of 8
September 1, 2004
Letter to Senator Left &Representative Reagan
10) The extent to which the termination of the agency would significantly harm
the public health, safety or welfare.
No other state agency has the expertise required to regulate CPAs or accounting
firms. Given the nature of today's marketplace and general lack of citizen trust,
the Board is the only state agency capable of accomplishing the task. The Board
has established proven requirements, processes and procedures for granting
certification that are effective and efficient. The Board has successfully
investigated cases - both complex and simple -- against small, medium and big
accounting firms based on well-known and developed resources, including the
Accountancy Enforcement Unit in the Office of Attorney General and long serving
and expert CPA investigators who know the law and understand the standards of
practice of the profession, the Board's procedures and most importantly, the
Board's mission to protect the public.
11) The extent to which the level of regulation exercised by the agency is
appropriate and whether less or more stringent levels of regulation would be
appropriate.
Arizona is a 'designation state only' state, which means that accountants,
bookkeepers, tax preparers and others who perform in accounting services are
not regulated by the Board. Thus, the Board regulates only those professionals
who use the CPA designation. The Board regularly receives complaints about
the accounting, tax preparation and bookkeeping practices and services provided
by individuals and businesses over which the Board has no regulatory authority
and over which no other regulatory board has authority. A legislative change
would be required to give a regulator the authority to investigate and take action
over these complaints. In regards to CPAs and accounting firms, the Board does
have the appropriate level of regulatory authority.
12) The extent to which the agency has used private contractors in the
performance of its duties and how effective use of private contractors could be
accomplished.
The practice of accounting consist of a wide variety of areas and it is essential to
contract with CPA investigators who have technical expertise and understanding
of accounting issues required to conduct proper investigations. Currently, the
Board must contract with CPA investigators through the State Procurement
Office using the request for proposal process. Many CPAs find this process
cumbersome and the insurance requirements overbearing. Also, the Board is
limited to the CPAs on contract and their areas of expertise, but the Board has
been able to recruit CPAs in the needed areas. Effectiveness would be achieved
by allowing the Board to directly hire CPA investigators.
'-
Page 5 of 8
September 1, 2004
Letter to Senator Left & Representative Reagan
Additional questions
1) Describe the role and function of the agency including major activities/projects,
accomplishments and obstacles to success.
As noted above in question 1, the Board exists to "ensure that the public is
protected from the incompetent practice of accountancy." Laws 2000 (2nd Reg.
Sess.), Ch. 120, § 4. The Board meets this charge by establishing and enforcing
qualifications and accounting standards for certified public accountants, public
accountants and accounting firms registered by the Arizona State Board of
Accountancy. The Board examines and certifies individuals to practice as
certified public accountants (CPAs) and registers accounting firms owned by
CPAs. The Board requires CPAs and registered accounting firms to renew their
certificates every two years. The Board investigates complaints concerning
compliance by CPAs and accounting firms with statutes and rules, determines if
a violation of the law has occurred and issues appropriate disciplinary action.
The Board answers and provides information to members of the public regarding
CPAs and accounting firms.
In April 2000, the Legislature provided the Board with an appropriation and the
authority to establish an Accountancy Enforcement Unit (Unit) in the Office of the
Attorney General. The Accountancy Enforcement Unit is composed of two
Assistant Attorneys General, two legal assistants and one legal secretary. The
Unit together with the appropriation authority for CPA investigators, has enabled
the Board to investigative audit failures and other complex accounting complaints
to facility effectiveness and timeliness of prosecution. The impact of this project
can be seen in the Board's disciplinary actions.
In September 2003, the Board's new statutes became effective. Highlights of the
legislation, included authority to create a peer review program (currently in the
rulemaking process), jurisdiction over CPAs entering Arizona temporarily, and
allowing certification by reciprocity via substantial equivalency (reducing the
paperwork and time to be certified if an individual holds a certificate that is active
and in good standing in another state). The legislation was a result of several
years work between the Board and its stakeholders.
In April 2004, CPA candidates sat at testing centers and used computers to take
the Uniform CPA Examination. This transition from a paper and pencil
examination to computer based testing required changes in the Board's statutes
and rules, which were in place before April 2004. The use of a computerized
examination speeds the examination process and provides for more timely
feedback to candidates on examination performance. The Board worked with the
American Institute of Certified Public Accountants and the National Association of
State Boards of Accountancy to ensure candidates would be given a quality
examination, candidate information would be secure and a seamless launch of
the new examination would occur.
Page 6 of 8
September 1f 2004
Letter to Senator Left & Representative Reagan
2) Provide financial data, such as number of full-time employees, expenditures
and revenues and fee structure, if applicable.
Arizona Board of Accountancy
Financial Data
FY 2004
Number of full-time
employees: 10 Fees*
Revenue (90%) $1,628,649 Registration Renewal $300
Application -
Expenditures* $1,820,911 Certification $100
Application - Initial
Cost Recovery $193,625 Exam $100
Application - Re-Exam $50
Income (Loss) $1,363 License Verification $12
Registration - Late Fee $25
* Non-lapsing authority ­figure
is estimate *Not inclusive of all fees
3) An identification of the problem or the needs that the agency is intended to
address.
The Board continues to review and make necessary changes to its fees to
ensure revenue and expenditures are aligned.
4) A statement, to the extent practicable, in quantitative and qualitative terms, of
the objectives of the agency and its anticipated accomplishments.
Objectives:
1) To administer the qualifying AICPA Uniform CPA Examination to persons who
meet the requirements:
FY 04 FY 05 FY 06 FY 07
Number of applications
Number of successful candidates
*Reduction due to computer based testing
1274
349
600*
160
600
170
600
180
Page 7 of 8
September 1, 2004
Letter to Senator Left & Representative Reagan
2) To certify and register persons who meet the statutory requirements as
certified public accountants and to register firms that meet the statutory
requirement:
FY04 FY05 FY06 FY07
Number of certificates issued 527 500 500 500
Biennial renewal of certificates 4464 4500 4500 4500
Number of firms registered 86 90 90 90
Biennial renewal of firms 442 450 450 450
3) To process complaints and provide enforcement of statutes and rules to
protect the public from incompetence, unethical and/or unprofessional conduct by
CPAs and accounting firms:
FY04 FY05 FY06 FY07
Number of revocations 10 7 7 7
Number of suspensions 550 500 500 500
Number of orders 25 28 28 28
Number of administrative letter of
concern 21 12 15 15
Number of expired certificates 152 150 150 150
Number of injunctions 4 3 3 3
5) An identification of any other agencies having similar, conflicting or duplicate
objectives, and an explanation of the manner in which the agency avoids
duplication or conflict with other such agencies.
There are no duplications or conflicts by any other state agency.
6) An assessment of the consequences of eliminating the agency or of
consolidating it with another agency.
Consolidation would greatly limit the Board's ability to regulate the CPA
profession. There are no economies of scale to be achieved by consolidation.
The practice of accounting consists of a wide variety of areas and there is a need
to contract with CPA investigators who have technical expertise and
understanding of accounting issues that are required to conduct proper
investigations. The public could not be assured that services conducted by
CPAs and accounting firms would meet professional accounting standards.
The Board looks forward to participating in the legislative hearing process to
assist the Committee in its evaluation of the Board's procedures and
effectiveness. In the meantime, I am available to answer any questions or
provide additional information that may be requested by the Committee. I can be
contacted at (602) 364-0870 or vme@accountancy.state.az.us.
Page 8 of 8
September 1, 2004
Letter to Senator Leff &Representative Reagan
Respectfully,
Attachments: Board Meetings, August 2003 - July 2004
Interim agendas can be obtained via the Internet at http://www.azleg.state.az.usllnterimCommittees.asp
ARIZONA STATE LEGISLATURE
INTERIM MEETING NOTICE
OPEN TO THE PUBLIC
SENATE COMMERCE AND HOUSE OF REPRESENTATIVES
COMMERCE AND MILITARY AFFAIRS COMMITTEE OF REFERENCE
FOR THE SUNSET HEARING OF THE
ARIZONA STATE BOARD OF ACCOUNTANCY
Date:
Time:
Place:
Thursday, November 18, 2004
1:00 p.m.
Senate Hearing Room 1
AGENDA
1. Call to Order
2. Opening Remarks
3. Presentation by the Arizona State Board of Accountancy
4. Public Testimony
5. Discussion
6. Recommendations by the Committee of Reference
7. Adjourn
Members:
Senator Barbara Leff, Co-Chair
Senator Marsha Arzberger
Senator Robert Blendu
Senator Dean Martin
Senator Victor Soltero
11/1/04
BM:nd
Representative Michele Reagan, Co-Chair
Representative Ted Carpenter
Representative Debbie McCune Davis
Representative Doug Quelland
Representative Wally Straughn
Persons with a disability may request a reasonable accommodation such as a sign language interpreter, by contacting the
Senate Secretary's Office: (602)926-4231 (voice). Requests should be made as early as possible to allow time to arrange the accommodation.
ARIZONA STATE LEGISLATURE
Forty-sixth Legislature - Second Regular Session
SENATE COMMERCE AND HOUSE OF REPRESENTATIVES
COMMERCE AND MILITARY AFFAIRS COMMITTEE OF REFERENCE
FOR THE SUNSET HEARING OF THE
ARIZONA STATE BOARD OF ACCOUNTANCY
Minutes of Meeting
Thursday, November 18, 2004
Senate Hearing Room 1 -- 1:00 p.m.
Cohair Leff called the meeting to order at 1:08 p.m. and attendance was noted by the secretary.
Members Present
Senator Robert Blendu
Senator Dean Martin
Senator Victor Soltero
Senator Barbara Leff, Cochair
Senator Marsha Arzberger
Representative Debbie McCune Davis
Representative Michele Reagan, Cochair
Members Absent
Representative Ted Carpenter
Representative Doug Quelland
Representative Wally Strauglm
Speakers Present
Frank Brady, President, Arizona State Board of Accountancy
Valerie Elliott, Executive Director, Arizona State Board of Accountancy
Cindy Hubiak, Arizona Society of CPAs
Jeffrey Hill, Arizona Society of Practicing Accountants
PRESENTATION:
Frank Brady, President, Arizona State Board of Accountancy, testified that for the last five years,
the Board has worked on implementing the Auditor General's recommendations. This work has
resulted in statutory, rule and procedural changes that have strengthened the Board's ability to
protect the public. On behalf of the Board, he requested that the Arizona State Board of
Accountancy be granted a ten-year continuance. He introduced Valerie Elliott, Executive
Director, Arizona State Board of Accountancy.
SENATE COMMERCE AND HOUSE OF REPRESENTATIVES
COMMERCE AND MILITARY AFFAIRS COMMITTEE OF
REFERENCE FOR THE SUNSET HEARING OF THE
ARIZONA STATE BOARD OF ACCOUNTANCY
November 18, 2004
Valerie Elliott, Executive Director, Arizona State Board of Accountancy, advised that the Board
was established in 1919, making it 85 years old this year. The mission of the Board is to protect
the public from unlawful, incompetent, unqualified or unprofessional Certified Public
Accountants (CPAs) and Public Accountants through certification, regulation and rehabilitation.
The Board fulfills its mission by:
• Administering the qualifying AICPA Unifonn CPA Examination to persons who meet
the requirements.
• Certifying and registering persons who meet the statutory requirement as certified public
accountants and registering firms that meet the statutory requirements.
• Processing complaints and providing enforcement of statutes and rules and lssue
appropriate disciplinary action against CPAs and accounting finns.
Ms. Elliott advised the Board consists of seven members appointed by the Govemor, has a staff
of 10 employees and a budget of $2.1 million. The Board oversees approximately 9,500 CPAs
and 2,000 accounting fim1s. The Board processes approximately 800 applications for
examination, 500 applications for certification and 100 complaints each year.
Ms. Elliott reviewed the findings of the Office of the Auditor General report dated September
1999 and measures taken by the Board in response to the findings:
• Complaint Handling - The Board conducted a fonnal study of the complaint handling
process. Procedural changes were implemented to increase the timeliness of the
resolution of complaints. The Board developed investigative guidelines which are
assessed periodically for improvement and changed when statutes and rules change.
• Public Access to Infonnation - The Board implemented changes at six months,
increasing the length of time that Executive Session minutes are kept and made changes
to the public records request from eliminating the need for notarization if the request is
for noncommercial use. The Board changed telephone systems and phone calls are now
answered by a live person during business hours. With the passage oflegislation in 2003,
the nature of pending and dismissed investigations are public record. The Board's
statutes and rules outline what infonnation is available to the public. The Board did not
implement the Auditor General's recommendation to have Administrative Letters of
Concem be public.
• Consider Changing or Eliminating the Quality Review Program - The Board suspended
the quality review program in 2000 and began the process of establishing a peer review
program. The Board has the explicit statutory authority for a peer review program, which
will go into effect in January of 2005.
SENATE COMMERCE AND HOUSE OF REPRESENTATIVES
COMMERCE AND MILITARY AFFAIRS COMMITTEE OF
REFERENCE FOR THE SUNSET HEARING OF THE
ARIZONA STATE BOARD OF ACCOUNTANCY
2 November 18,2004
Ms. Elliott revealed that in addition to implementing some of the Auditor General's
recommendations, the Board has statutory authority for the computerization of the Uniform CPA
Examination and ease of gaining licensure in Arizona for CPAs holding certificates in other
states. She recommended that the Board be continued for a ten-year period.
Cindy Hubiak, Arizona Society of CPAs, advised that the CPA Society does support a standard
ten-year continuation period for the State Board of Accountancy.
Jeffrey Hill, Arizona Society of Practicing Accountants, observed that in the last sunset meeting,
it was suggested there be more public members on the Board. The Society supports that
recommendation. In addition, the Society supports a recommendation for a five-year
continuance period rather than ten because in the next few years, as a public protection measure,
the federal govenunent may expand the licensure program to anyone in the accounting
profession. Other than those two suggestions, he stated the Society is neutral on the bill.
For Members' edification, Cochair Leff noted that the Board of Accountancy does not regulate
the Arizona Society ofPracticing Accountants.
Cochair Leff stated support for a ten-year continuation of the Board of Accountancy. In the
event federal law changes, she contended that the Legislature automatically introduces
legislation to address those changes. She sees no reason to change the sunset from a ten-year to
a five-year period. She stated that the Board has worked very well dealing with problems and
concerns over the years.
Cochair Reagan recommended that the Arizona State Board of Accountancy be
continued for ten years. The motion carried by a voice vote.
Without objection, the meeting adjourned at 1: 15 p.m.
(Original minutes, attachments and tape on file in the Chief Clerk's Office)
SENATE COMMERCE AND HOUSE OF REPRESENTATIVES
COMMERCE AND MILITARY AFFAIRS COMMITTEE OF
REFERENCE FOR THE SUNSET HEARING OF THE
ARIZONA STATE BOARD OF ACCOUNTANCY
3 November 18,2004