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The California Board of Accountancy (CBA), created by statute in 1901, is a semi-autonomous State of California agency under the California Department of Consumer Affairs whose purpose is to protect consumers by ensuring only qualified licensees practice public accountancy in accordance with established professional standards in California.

The CBA currently regulates over 5,000 firms and nearly 81,000 Certified Public Accountant (CPA) licensees, the largest group of licensed accounting professionals in the nation. The agency is unique in California in its authority to license and discipline not only individuals but also firms including partnerships and corporations. Its mandate is to regulate the accounting profession for the protection of the public by establishing and maintaining standards of qualification and conduct within the profession. It fulfills this mandate primarily through its authority to license.

Sign outside the Sacramento offices of the California Board of Accountancy

History

From its inception in 1901, the CBA has been charged with regulating the practice of public accountancy to ensure the public could rely upon its accountants as being competent. The original law prohibited anyone from falsely claiming to be a certified accountant, a mandate which continues to exist today.

The first accountants certified by the CBA in 1901 were required to sit for a written examination, including questions on Theory of Accounts, Practical Accounting, Auditing and Commerce Law; and they had to have a passage rate of at least seventy percent for each section. Applicants were required to provide a notarized affidavit certifying at least three years accounting experience, at least two years of which must have been in the office of a CPA performing actual accounting work. In addition, each applicant was required to submit three references testifying to his moral character. Today's requirement that each CBA licensee pass an ethics course finds its antecedent in this moral character requirement.

Sixty-five applicants were certified as licensees between 1901 and 1906. On April 18, 1906, the great San Francisco earthquake and fire destroyed all the records of the original board, including the documents of the CBA's first 65 licensees. In 1907, the CBA's Secretary-Treasurer, Mr. T. E. Atkinson, meticulously reconstructed those records by corresponding with each licensee from his new Market Street address. Today, thanks to Mr. Atkinson's diligence, the CBA retains the papers of its original 65 licensees in its archival material.

From the beginning of the 20th Century, consumer protection has been the undertaking of the CBA. A December 1, 1913, letter to Governor Hiram Johnson signed by Secretary-Treasurer Atkinson states, "For the further protection of the business public, a statute should be enacted regulating the practice of public accounting so as to require all persons holding themselves forth as being qualified to obtain from this board the certificate of certified public accountant. Public accounting is now generally recognized in business to be of such importance that a standard should be set by public authority and no one allowed to practice without proper credentials."

In 1929, the Legislature placed the CBA within the Department of Professional and Vocational Standards. In 1945, the Accountancy Act was substantially revised. In 1971, the Legislature placed the CBA within the newly-created California Department of Consumer Affairs. Shortly thereafter, the CBA moved its office from San Francisco to Sacramento.

Functions

The CBA protects California consumers by performing several functions. It starts by ensuring candidates are qualified to take the Uniform Certified Public Accountant Examination (CPA Exam). Once a candidate has passed the CPA Exam, completed any additional educational requirements, and fulfilled certain experience requirements, the CBA will issue a CPA license. The CBA renews that license every two years provided the licensee has met specified continuing education requirements. The CBA also registers CPA partnerships and corporations. The CBA ensures licensee compliance with the law through its Enforcement Division. It receives and investigates complaints and takes enforcement action against licensees for violation of CBA statutes and regulations.

The above functions are carried out by various units and divisions within the CBA.

• The Examination Unit ensures that only candidates who meet certain qualifications are able to take the Uniform CPA Examination.
• The Initial Licensing Unit ensures that only those who have passed the Uniform CPA Examination and meet the appropriate experience requirements are issued licenses to practice public accountancy in California.
• The Renewal and Continuing Competency Unit ensures that only licensees who have met specific continuing education requirements are allowed to continue practicing public accountancy in California.
• The Practice Privilege Unit ensures that the CBA is aware of out-of-state licensees who are practicing public accountancy in California.
• The Enforcement Division ensures that practicing licensees in California are held to the highest standards, both professional and ethical.
• The Client Services Unit ensures direct access to the CBA for both consumers and licensees with a focus on enhancing customer service.

Peer Review

On January 1, 2010, a new law, AB 138 (Chapter 312 of 2009), took effect in California requiring all accounting firms providing accounting and auditing services to undergo a mandatory peer review. A peer review is a study of a firm’s accounting and auditing work, performed by an unaffiliated CPA following professional standards. Tax practice is not required to be monitored by peer review. The CBA's peer review program is designed to equip firms to deliver high quality accounting and auditing services to consumers and assist in designing quality control systems to ensure that work products meet professional standards; provide firms an opportunity to learn new or better ways to improve services; and give consumers an extra measure of assurance by knowing the CPA firm they hire has successfully completed a peer review and meets the profession’s standards. Firms that fail their peer review are required to report that fact to the CBA.

The Board

The 15-member board is comprised of seven CPA licensees and eight public members. The Governor appoints four of the public members and all seven of the licensees. The Senate Rules Committee and the Speaker of the Assembly each appoint two public members. In appointing the seven licensees, the Governor must appoint at least two licensee members who represent small accounting firms. Each member of the CBA is appointed to a four year term and may only serve two consecutive terms.

The CBA is currently made up of the following membership:

• Manuel Ramirez, CPA, President
• Sarah (Sally) Anderson, CPA, Vice President
• Marshal Oldman, Esq., Secretary/Treasurer
• Diana L. Bell
• The Honorable Rudy Bermúdez
• Michelle R. Brough, Esq.
• Angela Chi, CPA
• Donald A. Driftmier, CPA
• Herschel T. Elkins, Esq.
• Louise Kirkbride
• Leslie J. LaManna, CPA
• Robert Petersen, CPA
• David L. Swartz, CPA
• Lenora Taylor, Esq.
• Andrea Valdez, Esq.

The CBA appointed Patti Bowers as its Executive Officer in October 2008.

See also

• Uniform Certified Public Accountant Examination
• Certified Public Accountant

External links

• California Board of Accountancy – Official website