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NASBA: The Five Functions You Should Know About
- Advocate For Effective State Based Regulation
- Enforcement
- Legislative And Regulatory Support
- Education And Training
- CPA Pipeline
If you’re an accountant, you’re probably curious about the functions of the NASBA, the leading body that oversees the state boards of accountancy. This is important to know, as there is a great deal of discussion of how business titans hide their wealth and how accountants may be complicit in that action. As NASBA is an authoritarian body over this profession, let’s review five of the functions it undertakes as part of its mission statement.
Advocate For Effective State-Based Regulation
The most vital function of the NASBA is to advocate for effective state-based regulation on the behalf of the state boards. Along with working with state and federal regulators to protect the sovereignty and authority of the state boards, the association is responsible for advocating for the state boards when meeting with state, national, and international regulatory boards. They are also the primary source of support for state boards with regard to its independence on financial and operational matters.
Enforcement
While every state board has its own minute rules and code of conduct, the vast majority have one overarching ethical code, and that is upheld by the NASBA as one of its core functions. The association has a responsibility to not only build effective relationships with both state and federal regulators, they are tasked with ensuring that they continue to have an open line of communication with each state board, enabling them to offer them resources as need and maintain consistency among all state boards. They are additionally tasked with providing every state board with a transparent, ethical and effective peer review program for any ethical or compliance complaints.
Related: What is Securities Fraud?
Legislative And Regulatory Support
A critical function of the NASBA is to monitor the legislative and regulatory support needs of each individual state board. Because laws and regulations can change on a yearly basis, and sometimes more frequent, it’s important that the association monitors changes and relays the necessary information back to the state boards. This is conducted by building a large legal network and using those connections to benefit the boards. The association is also responsible for supporting the boards with legal and political aid, should the need arises.
Education And Training
Another function of the NASBA is to ensure that the training and educational needs of each individual state board of accountancy are met. This is done by discussing the state-specific needs with the state board’s officials, their legal counsel, and their staff. The association then works to create a comprehensive training curriculum that outlines that specific state’s needs, ensuring that the state’s laws and regulations are adhered to as part of the training. The association also has a tradition of holding regular meetings with the officials of the state boards to provide extra educational training that arises when new technology or advancements in the field are made.
CPA Pipeline
One of the main functions of the NASBA is to overview and promote the CPA, which is also known as Certified Public Accountant, process. This is one of the association’s goals because the field needs more CPAs who are competent and confident in their careers. The public also needs access to CPAs and so this association focuses on working with relevant stakeholders to build strategies that will help recent graduates move on to become licensed CPAs. This is done in a variety of ways, including promotion on college and university campuses, building core competencies that can be taught in the classroom and serve as a pathway forward to licensure, and more.
NASBA has been a force for positive change in the accounting profession since 1908. It continues to set the ethical standard for the country’s 55 state boards of accountancy and is as progressive as it is dedicated to advancing the profession. There are more than five functions of the NASBA; these five, however, are what make up the association’s foundation.