REGULATORY AND LEGISLATIVE BODIES

Activities of the accounting administrator that involve the regulatory and legislative process result primarily from the 150 hour requirement and other changes in the requirements to take the CPA examination and enter the profession. Curriculum changes in accounting education may be affected by legislative activities, making the latter particularly important to the accounting administrator. However, these are areas in which most of us have little experience. Following are some guidelines for the accounting administrator to effectively deal with regulatory and legislative activities.

What Level of involvement is Appropriate?

Accounting administrators must decide the level of involvement they wish to have in regulatory and legislative activities. At one extreme is a "hands off" approach in which the administrator views the regulatory and legislative process as a function of public practice. Once regulations and/or legislation is established, educators then become involved to the extent that their academic programs are affected. At the other extreme is active participation in the regulatory and legislative process. Assuming that the educational institution wants to have academic programs which qualify graduates to take the CPA examination, some involvement by educators, including the accounting administrator, seems appropriate to safeguard against undesirable regulations and/or legislation. Following are some items for you to consider in making this decision.
Because of their impact on academic programs, a strong case can be made for active involvement of the accounting administrator in the regulatory and/or legislative processes.

For example, highly specified legislation with heavy accounting requirements may significantly tie the hands of educators and essentially dictate a curriculum to them. Should the accounting administrator become actively involved, care must be taken not to be viewed as advocating positions that are favorable to education without regard to practice, or favorable only to his or her academic institution to the detriment of others.

Choosing the right faculty members to become involved with the legislative process is very important.

Certain faculty members have the reputation, credibility and other characteristics which make them appropriate for involvement. Others, while good academics, may be better suited for other responsibilities and, if involved in legislative activities, may actually do more harm than good.

What You Need to Know Before Getting Involved

Getting involved in the regulatory and legislative process is an important but time consuming process. Following are some items you may wish to consider as well as some available resources to draw upon.

• Regulation and/or legislation usually begins within the practicing accounting profession, namely the state society of CPAs and/or the state board of accountancy. Assuming accounting administrators wish to be involved in the regulatory and legislative process, participation in general professional activities in the state is desirable to establish lines of communication, create mutual respect between practitioners and educators, etc.
• The accounting administrator needs to understand the AICPA Implementation Guide for the 150-hour requirement. This guide advocates very general legislation with some specification of requirements in the regulations which implement the legislation. The preferred regulations, however, place a great deal of responsibility in the hands of educators for the design of curriculum within broad guidelines.
• There are a number of resources which you should be familiar with. These include the AICPA Director, Academic and Career Development, the AICPA committees supporting education issues, and the availability of individuals from other states which have already enacted regulations or legislation mandating the 150-hour requirement. You also should familiarize yourself with the AICPA/NASBA Uniform Accountancy Act and Uniform Accountancy Act Rules (UAA).

Communicating With Other Groups

Examples of groups to keep in close touch with are as follows:

• Other accounting administrators.
• Representatives of the state society of CPAS, the State Board of Accountancy, the AICPA, and other similar groups.
• Representatives of accounting groups other than CPAs which may be indirectly affected, and which may feel threatened by changes in the education standards for CPA certification.
• Care must be taken that appropriate individuals within the university are aware of the involvement of the accounting administrator and/or other accounting faculty in the legislative process. Some universities have external relations units which may be of assistance in accomplishing legislative objectives.

Summary

The job of the accounting administrator continues to expand. Dealing with regulatory and legislative matters is an example of this expansion. Most of us have little experience in this area. Through good communication and use of the available resources of others, your transition to this role can become easier.

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