Prepared for the 2008 NASBA Annual Meeting October 2008 Presented by Joseph T. Cote, CPA.
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Transcript of Prepared for the 2008 NASBA Annual Meeting October 2008 Presented by Joseph T. Cote, CPA.
Prepared for the 2008 NASBA Annual Meeting
October 2008Presented by
Joseph T. Cote, CPA
Committee on NationalExamination Preparedness
• Recommended in 2006 by Special Examination Issues Task Force (Chair – Sam Cotterell)
• Began its work in 2007• Charge – Initiate a process to
increase the influence of state boards of accountancy and NASBA in the CPA Examination process
Committee on NationalExamination Preparedness
Advisors & Staff:Bob Pearson
(CLEC)Psychometricians:
Bob Brennan Alan Cohen Jim Wollack
Staff: David Costello Joe Cote Ken Bishop
Members:Chair, Wes Johnson
(MD)Sheila Birch (OH)Dan Dustin (NY)Gary Heesacker (WA)Kathy Smith (NE)
Areas of FocusCBT Services Agreement – Should we wait until
2014 or can important enhancements be made sooner? Should we extend the current agreement beyond 2014 as the AICPA has requested?
Cost Control – What steps might be taken to control costs now and into the future?
Influence Over the Examination – How might/should state boards and NASBA increase their influence?
Dealing with Contingencies – Should a contingency examination be developed that could be launched if the present operation were no longer available?
Cost ControlSample Total Candidate Fees for Four Sections
Year AICPA Prometric
NASBA Board* Total
2003 (PBT)
144.00 0 0 200.00 344.00
2004 180.00 250.00 40.00 140.00 610.00
2005 180.00 327.00 40.00 140.00 687.00
2006 260.00 339.54 60.00 140.00 799.54
2007 320.00 349.90 72.00 150.00 891.90
2008 380.00 357.70 72.00 150.00 959.70
Increase from 2004
200.00111%
107.7043%
32.0080%
10.007%
349.7057%
* Each board sets its own administrative fees. Under PBT, board fees covered the costs of hiring proctors and renting facilities. These fees are representative samples.
Conference on theState of the Examination
Held on May 19, 2008 at the Grand Hyatt DFW
Invitation-only for representatives of boards of accountancy
48 boards of accountancy were represented by 130 attendees
Agenda for May 19, 2008 Conference
1. Progress & Potential
2. Issues Related to the CBT Services Agreement:
Provisions of the Agreement Cost Control Control of the Examination Contingency Examination
3. International Delivery of the CPA Examination
Feedback from Conference Participants, State Boards & Regional Meetings Discussion
Consider an extension of the CBT Services Agreement, but only if NASBA can negotiate for changes such as: More influence over the policies related to and the content
of the Examination, and Better controls over the rising cost of the Examination.
NASBA should not develop its own contingency examination, but provisions for contingencies should be created.
The plans for international delivery of the CPA Examination should provide that candidate applications continue to be processed by state boards or their agents.
Recommendations Coming Out of the July 2008
NASBA Board of Directors MeetingNASBA should meet with the AICPA to discuss an
extension of the CBT Services Agreement. The following are principles that should be addressed in a future agreement.Provide for State Board/NASBA effective control
of the CPA Examination (through increased governance and contract prerogatives and rights)
Provide for development of a contingency exam under secure conditions
Shift the structure of the agreement such that State Boards/NASBA are in a role more like a purchaser party
Principles of a Future CBT Services Agreement (Continued)
Restructure and clarify the calculation, determination and timing of fee increases to assure greater input from State Boards/NASBA
Clarify and strengthen the test-prep business prohibitions as well as the consequences for breaches
Deal with contingency concerns by restructuring the escrow agreements or developing alternatives to make the process legally certain and efficient
Further strengthen the provisions protecting Candidate Data including biometric data
Plans for the FutureA negotiating team of people is being established with representatives appointed by NASBA and the AICPA to discuss a possible extension of the CBT Services Agreement beyond 2014.
This team will be meeting over the next few months.
Questions?