Support ASCPA’s Educational Foundation with your ticket purchase, or participation in our on-site bottle pull!
Tickets available NOW at alabama.cpa/chef
To become an event sponsor contact Megan Hughes at mhughes@alabama.cpa by May 31.
2024-25 ASCPA BOARD OF DIRECTORS
Sarah Propper, Chair
Paul Perry, Chair Elect
Cathy Dover
Jennifer Forrester
Bruce Fryer
Matthew Hilburn
Kendra James
Brian McLeod
Jeremy Mosteller
Amanda Paul
Joseph Wynn
Dennis Sherrin, AICPA Council Rep
Jamey Carroll, AICPA Council Rep
James White, Jr., Past Chair
CHIEF EXECUTIVE OFFICER
Jeannine Birmingham, CPA, CAE, CGMA
CONTRIBUTING WRITERS
Bruce P. Ely
Sarah Beckett Ference
Dr. Amelia Hart, CPA
James E. Long, Jr.
Heather Price
Steve Sledge, CPA
William T. Thistle, II EDITOR
Megan G. Hughes, APR
Day in the Life of a CPA
Meet Mark Koziel, President & CEO of the American Institute of CPAs, and on a “Day in the Life of a CPA.”
FROM THE CEO
A day at the Alabama Legislature is filled with energy and purpose, as democracy comes alive in every corner of the State House. From the early morning flurry of staffers and reporters to the echo of footsteps in marble hallways, the heart of Alabama’s government beats with spirited debate and meaningful decision-making. Each year, lawmakers gather to consider policies that impact how we live, work, and grow in Alabama. Advocacy is a core pillar of the Alabama Society of CPAs (ASCPA), and this year marked a significant step forward with the launch of our newest event: A Day at the Legislature. We were proud to host ASCPA’s Legislative Breakfast, followed by direct engagement with Representatives and Senators, and capped off by recognition from Representative Kerry Underwood on the House floor. More than forty CPAs participated, making the day not only productive but also a true celebration of our shared mission. To learn more about the priorities we’re championing, please enjoy the exclusive ASCPA White Paper prepared especially for members of Alabama’s Legislature.
Alabama Society of CPAs: What Issues Matter to the Accounting Profession
By, Rob Pearson, CPA, and Jeannine Birmingham, CPA
Accounting is the language of business, but fewer professionals are speaking that language, as the number of accounting graduates, particularly those that ultimately become certified public accountants (CPAs), has dwindled over the past couple of decades—yes, decades.
The aging profession has reached a point where the number of new CPAs can’t keep pace with the number of veteran CPAs retiring. In fact, estimates from the AICPA, the national professional association for CPAs, predict that 75% of today’s CPAs working in public accounting firms will retire within the next 15 years.
This is happening at a time when demand for CPA services is only increasing, driven by the growing complexity of tax laws, financial regulations, and business operations. After all, CPAs are essential professionals when it comes to ensuring the accuracy and integrity of financial statements that businesses and investors rely on. Further, CPAs provide specialized audit, attest, and tax services that protect the public interest; they serve in significant consultative roles, providing strategic insight and guidance to both large and small businesses; and they provide requisite services that keep state and local government agencies operating. In other words, CPAs arguably power the economic engines we all rely on.
In short, a prolonged shortfall of CPAs could be detrimental to the economic drivers of most states, which would only lead to larger repercussions to the nation’s economy and capital markets.
The fact of the matter is we need more CPAs. As a state-regulated professional license subject to no national law, it’s up to the state (and every state) to act on creating licensure pathways that attract the future generations of talent that are so desperately needed while preserving the authority, integrity, and trust the CPA license is regarded for.
It’s of further belief that modernizing CPA licensure requirements will also lead to the enhancement of the profession in Alabama, bolster the state’s workforce, and create a stronger business environment, which ultimately strengthens the state’s economy.
For nearly two years, countless state CPA societies across the country have been listening to their members, those in the trenches of the profession, to envision the CPA licensure model of the future. It’s widely believed among stakeholders that modernizing CPA licensure pathways nationally will enhance the profession, bolster the workforce and economy within each participating state, and create a stronger business environment across the nation. A top priority among the states collaborating on this licensure modernization initiative is making much-needed changes that broaden access to the CPA license.
Why is the CPA license important?
• The CPA license protects the public.
o CPAs are held to strict ethical and technical standards, which helps ensure the accuracy and integrity of financial statements, protecting investors, businesses, and the public.
Happy Spring to all our ASCPA members!
As I write this in April, thunder is rolling outside—April showers really do bring May flowers! I hope your 2025 is off to a fantastic start. This issue is dedicated to celebrating the value of ASCPA membership and the incredible community we’ve built together.
In today’s fast-evolving financial landscape, CPAs face more challenges—and more opportunities— than ever before. Beyond maintaining technical expertise (a friendly reminder to start knocking out those CPE credits!), we also need a strong professional network and a unified voice. I truly believe that being a member of ASCPA gives you exactly that.
ASCPA offers exceptional continuing education opportunities, right at your fingertips. Check out our extensive CPE catalog on the website, and in this issue starting on page 14, to explore the wide variety of online courses and exciting in-person options—whether you’re into a relaxed “Sip and CPE” evening (with two hours of ethics!), or prefer soaking up the sun at our Beach Cluster in Orange Beach.
And don’t miss two key dates:
• June 16: We’re thrilled to bring back A Night Out with Chef Hastings as our pre-Annual Meeting social! This exquisite, reception-style culinary event features dishes crafted by renowned Chef Hastings, with each course thoughtfully paired with wines selected by a seasoned sommelier. You’ll enjoy a truly elevated evening—and don’t forget the “secret bottle” pull, with all proceeds benefiting the ASCPA Educational Foundation.
• June 17: Our Annual Meeting at The Club in Birmingham. This event is always a highlight for me. I’ve attended since I was a young CPA, and each year, I walk away inspired and better equipped for both career and life. The opportunity to connect with fellow professionals, vendors, and thought leaders is unmatched.
Advocacy That Makes a Difference
There is strength in numbers. As an ASCPA member, you’re part of a
powerful, collective voice that advocates for our profession at both the state and national levels. In fact, the executive committee will be heading to Washington, D.C. this May to meet with our Senators and Representatives about legislation that directly affects CPAs. These advocacy efforts are essential to protecting the CPA license and ensuring a thriving business environment for our profession.
The Joy of Giving Back
One of the most rewarding parts of serving on the ASCPA board—and especially as chair this year—has been the opportunity to give back. Whether it’s sitting on a panel, speaking with students, or contributing to nationallevel discussions, it’s been an incredibly fulfilling experience. The society offers countless ways to make a difference, whether your passion lies in mentorship, legislative work, or advancing the profession. There’s always a way to help others just as someone once helped you.
As my term as chair comes to a close, I want to thank past chair James White for your unwavering guidance (which I leaned on more than once!) and extend heartfelt congratulations and best wishes to our incoming chair, Paul Perry. Paul is not only a fantastic CPA, but also a great friend.
To every member who has made this year meaningful—thank you. It has truly been an honor to serve as your chair.
TIME TO RENEW
This is a friendly reminder - it’s time to renew your membership dues for 2025-2026! By renewing your membership, you’ll continue to have access to all the valuable resources and benefits that come with being a member of ASCPA, including professional development opportunities, networking events, and access to industry-leading research and publications. Don’t miss out on the chance to stay connected to your peers and stay up-to-date on the latest trends and developments in the accounting profession. Renew your dues today and continue to enjoy all of the benefits of being a member of ASCPA.
FREQUENTLY ASKED QUESTIONS ABOUT MEMBERSHIP RENEWAL:
Welcome to the Frequently Asked Questions section! Here you’ll find answers to common questions about ASCPA membership . Browse through the questions and their corresponding answers to find the information you need.
Q. What is the deadline to renew my dues?
Our membership renewal period runs from May 1 - July 31.
Q. What do I do if my organization does not pay my dues, and I am not enrolled in auto renew?
Log in to your profile and pay your dues online. You can also print a copy of your invoice and mail a check. Still need help? We’ve got you covered! Contact Bethany Booth, Membership & Peer Review Manager, at bbooth@alabama.cpa or 334.386.5751.
Q. What is the Alabama CPA PAC contribution?
This is a voluntary contribution to the Alabama Society of CPAs Political Action Committee (Alabama CPA PAC). The PAC effectively ensures that your profession’s best interests are represented every year. It supports state legislators and candidates who support CPAs and business interests. The PAC allows us to remain active, so we have direct access to lawmakers when legislative issues arise.
Q. What do I do if I need to update my email address?
Contact Bethany Booth, Membership & Peer Review Manager, at bbooth@alabama.cpa or 334.386.5751.
Q. How is my contribution to ASCPA’s Educational Foundation used?
The ASCPA Educational Foundation is a 501(C)(3) organization, which provides annual educational scholarships to accounting students who plan to become Alabama CPAs.
Q. What happens if I don’t renew my membership?
Your membership will be suspended on August 1, 2025, and you will lose all membership benefits. Your status as a member will be terminated Feb. 1, 2026.
Q. Can I still be a member if my CPA certificate/license has lapsed or is registered as inactive with a state board of accountancy?
Yes. However, if your certificate/license has been suspended or revoked, you are not eligible for ASCPA membership.
Q. Who do I contact if I have questions about my membership, my dues, or if I would like to opt out of the auto renew option?
Contact Bethany Booth, Membership & Peer Review Manager, at bbooth@alabama.cpa or 334.386.5751.
Day in the Life of a CPA
Mark Koziel, CPA, CGMA President & CEO, American Institute of CPAs, and CEO, Association of International Certified Professional Accountants
As the CEO of a global organization, I’ve already found myself with a very full travel schedule. In this job, there is rarely a day that’s the same. As of day 42 as CEO, I’ve visited three of our offices, including London for CIMA Council, Durham, NC, and New York City for staff meet-and-greets and other meetings. Today, I am in NYC.
5 A.M.: Wake up and get the day started. Typically, I first catch up on overnight emails, then check the day’s headlines (global, then profession). Next will be any social media to catch up on and respond to.
5:45 A.M.: Head to the office. Today I’m in NYC, so it’s a quick walk from where I typically stay.
6 A.M.: Grab my cup of coffee and get to work answering the highest-priority emails from what I reviewed in the morning.
7:30 A.M.: Today is an unusually late start for my first meeting—a briefing from our team in North Asia. I’ve been checking in with each region as I get up to speed on their top priorities, how we can help them in their roles, and discovering their greatest areas of growth. I usually schedule these meetings in the time zone most suitable for the region and, today, they selected this later time.
8:30 A.M.: Town Hall final run-through before we go live later today. The AICPA Town Halls were created by Erik Asgeirsson, president and CEO of CPA.com, and I in 2020 during the pandemic to help members stay informed of critical issues. Back then, the big topic was the Paycheck Protection Program (PPP). Now it’s the Washington, D.C., landscape and tax. We started with about 400 attendees back in April of 2020. That quickly grew to about 1,000 attendees when I left in August 2020. Now there are over 10,000 attendees per session. The popularity and audience growth are just amazing. This run-through is to make sure we all have our topics set and, more importantly, includes a time check so we stay on time.
9 A.M.: I’m double-booked, so I quickly stop into a breakfast celebration for my executive assistant, Donna Wolf, who is retiring at the end of the month. I then join a Zoom meeting with the Audit & Finance Committee to discuss audit-related matters, final Association financial statements, internal audit reviews and what will be presented at the April live board meeting. This call runs much of my morning, to approximately 11:20 a.m.
11:30 A.M.: Immediately following the Audit & Finance meeting, I hustle to the other side of our office to the studio to record a congratulatory video message for the president-elect of a state CPA society who will be named president at an upcoming annual meeting. I was invited to attend live but unfortunately had a conflict, so they asked if I could record a video. It is someone I know well, and I am more than happy to do so.
NOON: Following the recording, I make my way to an informal luncheon with the office staff. I share a quick introduction about my thoughts on the future of our organization and the profession. I thank the team “live” for all the things they do for our members, and we share some pizza, wings and cake (with my picture on it!). It’s been a really great experience getting to meet all the people who have largely been thumbnail video boxes on my computer screen.
ABOUT ME
NAME: Mark Koziel, CPA, CGMA
JOB TITLE: President & CEO, American Institute of CPAs, and CEO, Association of International Certified Professional Accountants
1:30 P.M.: After the announcement of my return to the Association, we had several requests for interviews from the media that cover our profession. This was the first week in which my schedule was able to accommodate some of these requests, so today I’m speaking with Courtney Vien, senior reporter at CFO Brew.
2 P.M.: Quick check-in with my assistant to see if she needs me for anything or if there are any pressing matters to discuss.
2:30 P.M.: The AICPA Town Hall starts in 30 minutes, so I head back to the studio to get set up for sound and prepare for the show. At this time, all presenters are on video in a green room waiting for the start and nailing down final instructions.
3 P.M.: Erik Asgeirsson kicks off the Town Hall. I’m up first to discuss feedback I’ve received from members both on the road and through the AskMark@aicpacima.com inbox. At a prior Town Hall and in several articles after, we’ve asked members to reach out to me directly to provide feedback on the profession. I present the results to the audience and am followed by our D.C. team with an update on BOI, the IRS, DOGE and other D.C. topics. The last session focuses on Quality Management and new requirements about to be introduced in audit. To finish, we open it up to questions from the audience. On this day, there are 11,400 participants.
4 P.M.: I return to my office to join another Zoom meeting with the Association’s firm services team to discuss the agenda and topics for the Major Firms Group meeting in July.
5 P.M.: Time to catch up on emails and any calls I need to make before leaving the office for the day.
6:30 P.M.: I take a walk around NYC, clear my head and figure out where I want to grab a quick dinner.
8 P.M.: I head to the Carnegie Club, where I have a scheduled cigar call with an IT confidante. that I check in with regularly. We usually talk once per week, and he helps me sort out any IT challenges I may be dealing with.
9:30 P.M.: I grab a glass of red wine and do a final review of text messages, emails and social media. I choose a Zinfandel from Grgich Hills Estate in Napa.
10 P.M.: Call my wife, Maryann, to check in on her day, fill her in on mine and discuss our schedules for the next few days and weekend.
10:45 P.M.: Final check of current events and profession news headlines.
11 P.M.: Lights out.
ORGANIZATION SIZE: AICPA & CIMA, together as the Association of International Certified Professional Accountants (the Association), advance the global accounting and finance profession through our work on behalf of approximately 600,000 AICPA and CIMA members, candidates, and registrants in 188 countries and territories.
PREVIOUS POSITIONS: Most recently, I was president and CEO of Allinial Global, an association of independent accounting and advisory firms with 268 member firms worldwide. I started there in 2020 after 14 years with the Association (previously the AICPA), where I served in a number of roles, including executive vice president of firm services.
ALMA MATER: : Bachelor of Science in accounting from Canisius University (Buffalo, NY) in 1991
WHEN I’M NOT AT WORK
FAMILY: Wife, Maryann, and son, Ben
PETS: Ozzie the dog
HOBBIES: In my down time, I enjoy the beautiful mountains of North Carolina (home); spending time with my wife, Maryann, and my family; and boating, golfing and smoking—both a fine cigar (with a glass of wine) and BBQ.
Behind the scenes during an AICPA Town Hall Staff luncheon including a cake with Mark’s picture on it
Boating with Maryann and Ozzie
MORE FROM MARK: INSIGHTS INTO HIS LEADERSHIP GOALS
WHAT EXCITED YOU MOST ABOUT STEPPING INTO THE ROLE OF CEO FOR THE AICPA?
From the start, I have absolutely loved the CPA profession. I actively promote and encourage others to consider a career in this great profession. I’ve been fortunate to encounter and accomplish many things, gaining experience in public accounting, corporate finance, politics and public affairs. For the past five years, I served as CEO of an international association of firms with $6 billion in revenues. When I left the Association in 2020, I didn’t expect to become its CEO, but my international experience made me a strong candidate. Since WWII, there have only been five CEOs of this esteemed organization. It is an honor and privilege to serve. I do not take the role lightly, and I am committed to advancing the profession to serve the public interest and meet market demands.
There is much more outside of licensure that needs to be done to shore up accounting talent, including continuing to examine firm business models.
WHAT ARE 3 THINGS YOU’RE LOOKING FORWARD TO IN YOUR FIRST YEAR?
Additional Pathway to CPA Licensure— First and foremost, advancing discussions already in the market to create an additional pathway to licensure. Creating flexibility for those wrestling with the time and cost of education is critical. This conversation has been going on far too long. It was clear that state societies, state boards of accountancy and members in firms and businesses wanted to see this happen. Even before I started, the team was working on ways to support that. Education is important,
I’ve said for years, our members seem to remember more what we do TO them, not for them. I’d like to do more for members.
as is experience and examination. We will continue to explore how competencies fit into the ongoing health of our profession while maintaining what the public expects of us. I worry about mobility but have said we need to help our members navigate it and solve for it as quickly as we can. Meanwhile, there is much more outside of licensure that needs to be done to shore up accounting talent, including continuing to examine firm business models.
Reconnecting with Members & Listening— We started an email address, AskMark@ aicpa-cima.com, and have thus far received just shy of 500 responses— and I’ve responded to all of them. It’s important that we listen and react to members’ needs. For state societies and the AICPA, we have the challenge of keeping the profession self-regulated and having challenging standards to make sure we set the bar high. But we are also here to serve our members, and I’d like to lean into that a little more. I’ve said for years, our members seem to remember more what we do TO them, not for them. I’d like to do more for members. One thing we’re discussing is more focused communities. More on that in the short-term.
Reconnecting with Team Members—I plan to check in regularly to make sure we stay focused on our strategic direction to help our members. It’s a great team, and I’ve missed being part of a larger organization. I’ve been working hard in these early days to reconnect and look for ways to make their jobs easier, so they serve our members better.
WHAT HAS BEEN THE BIGGEST CHALLENGE IN THIS ROLE SO FAR?
I regularly receive requests to comment on the Washington, D.C., landscape for our U.S. members, as well as for our professionals worldwide and other accountancy bodies seeking guidance on their readings.
Well, the political landscape is certainly interesting and, dare I say, challenging? During my initial days, the team has been focused on securing meetings with key figures in Washington and globally. It’s a challenging task because the names keep changing and the topics we need to discuss seem to shift by the hour. Working to keep up with the current uncertainty has certainly been at the forefront. Our Washington team has done a great job with it, but I worry greatly that our members might not get the support they need from the IRS based on the current landscape. Keeping up with regulatory changes has been the greatest challenge and will hopefully settle in the second half of the year.
WHAT EXCITES YOU ABOUT THE NEAR FUTURE OF THE PROFESSION?
As I mentioned before, the CPA profession is the greatest profession in the world! I’m excited to see it continue and will do my best to help shape the future. There are many opportunities to advance this greatness. We need to focus on increasing the pipeline, building on the work of the National Pipeline Advisory Group and collaborating with states. Practice changes and helping firms grow through additional services are crucial. ESG and sustainability remain important, but there’s much more. Artificial intelligence will reduce mundane tasks, allowing us to focus on complex, clientfacing work. Expanded services like client advisory services (CAS) enable us to be trusted advisers. New audit tools will add value by providing insights beyond standard reports. We can help Main Street small businesses simplify reporting and oversight. Creating future-ready finance professionals with the Finance Leadership Program is essential. The list goes on, and there’s no shortage of opportunities. That’s what keeps me excited about the future.
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• CPAs understand the specialized needs of business & government to keep the economy thriving.
o In particular, the profession supports businesses by providing critical services that help them grow and contribute to the economy.
• The CPA license protects the financial health of the state.
• The CPA license represents a higher level of authority and legal recognition than a credential. CPAs are subject to oversight by regulatory bodies and must adhere to – and maintain – a high code of conduct throughout their career. This accountability fosters public trust and provides greater consumer protection than credentialed accountants or financial advisors.
Across the U.S., the CPA Profession is embarking on adding an alternate pathway to CPA licensure. Alabama will introduce said legislation in 2026.
Why is introducing a new pathway to CPA licensure important?
• Modernizing the license will lead to the enhancement of the profession, bolster the workforce of each state, and create a stronger business environment which ultimately strengthens the state’s economy.
• Individuals learn differently. Broadening pathways to licensure will provide all students with the opportunity to thrive.
• Reducing the cost and time required for education can make the CPA profession more accessible to a broader range of individuals. This will help aspiring CPAs enter the workforce sooner, filling the gap left by retiring professionals and meeting the growing demand for services.
• Data point:
o The CPA profession is facing a retirement cliff, with the AICPA reporting that approximately 75% of today’s public accounting CPAs are expected to retire within the next 15 years.
o The demand for CPA services is increasing, driven by the growing complexity of tax laws, financial regulations, and business operation.
o Inaction will be detrimental to the economic engine in most states and lead to large repercussions to the economy & capital markets.
o Cite relevant data on your state’s population trends to reinforce salient points.
• CPAs power trust, growth and opportunity. They do this by supporting families making financial decisions around the kitchen table, small businesses in our communities and the world’s capital markets. It is imperative that we continue to attract the best and brightest talent, because every single one of us depends on CPAs.
• An extra year of experience allows for further enhancement of skills and competency.
o In states where apprenticeship is growing in popularity, highlight the CPA profession has been an apprenticeship model for a long time and these new pathways allow for learning in a practical environment at a reduced cost. Gets the student into the workforce to drive the economy.
Attest:
In Alabama’s Uniform Accountancy Act (UAA), Section 31-1-1, the definition of attest Section 34-1-2, is explained.
Acts declared unlawful, Section 34-116(2):
No firm with an office in this state shall provide attest services or assume or use the title or designation “certified public accountants” or the abbreviation “CPAs” or any other title, designation, words, letters, signs, abbreviation, card, or device tending to indicate that the firm is composed of certified public accountants, unless the firm is registered as a firm of certified public accountants under Section 34-1-6, holds a live permit issued under Section 34-1-11, and all of the offices of the firm in this state for the practice of public accounting are
maintained and registered as required under Section 34-1-10, and ownership of the firm is in accord with this chapter and rules promulgated by the board
In summary, attest services include audits, reviews, and compilations. Alabama’s UAA limits attestation and auditing functions to Certified Public Accountants (CPAs). Audits are a thorough investigation that ensures the accuracy and reliability of financial statements.
Practice Privilege:
In Alabama’s Uniform Accountancy Acct (UAA), Section 34-1-7, the definition of Practice Privilege is explained.
Subject to subsection (b), a person who is licensed as a certified public accountant in another state whose principal place of business is not in this state shall have all the privileges of a certified public accountant in this state without the need to obtain a certificate or permit under this chapter or to notify or register with the board and may offer or render professional services in this state, whether in person or by mail, telephone, or electronic means, without any notice, fee, or other submission under this chapter.
Miscellaneous:
• Automatic mobility (in Alabama law), future-proofs the profession’s ability to evolve its licensure model today and tomorrow.
• The CPA profession is governed by the state Boards of Accountancy based on state laws and rules. There is no “national law”.
o The state boards in each jurisdiction are the ultimate authority and regulator of what is allowable in the profession in that jurisdiction.
• State societies, state boards of accountancy, the academic community, AICPA, NASBA, and other stakeholders have worked tirelessly for several years to right the declining accounting curriculum enrollment trajectory. The addition of an alternative pathway to licensure is the collaborative solution.
CPE WITH ASCPA
We are excited to kick off the 2025 CPE Season! On the next few pages you will find a preview of our CPE programming throughout the upcoming year, including live webcasts, webinars, in-person events and hybrid events featuring in-person and virtual attendance options. This is a complete listing of ASCPA-hosted courses to be offered in 2025. Courses that will be held after September 30 will not be available in the online catalog for registration until closer to the event date. Questions can be directed to Kristi Gates, Director of Professional Education, at kgates@alabama.cpa.
This year, ASCPA will host more than 700 hours of CPE in addition to offering content from CPA Crossings, ACPEN and Surgent. We have also renewed our partnership with CPA Crossings to bring you ALOnDemand, a platform designed to bring many more On-Demand courses to your fingertips! Read more about ALOnDemand on page 22.
We have a list of CPE FAQs on our website which address accessing your ASCPA account, logging into a CPE course, and finding your transcript. There is also a section on surveys, which must be completed within 7 days after a course in order to process CPE certificates. Please read over this short FAQ page, which can be found at alabama.cpa/cpe-faq, to ensure you are ready to conquer the 2025 CPE Season.
K2’s Excel Essentials for Staff Accountants
Virtual
5/6/2025 (9 AM-4:30 PM)K2
Speaker | 8 Other
K2’s Excel Tips, Tricks, and Techniques for Accountants
Virtual
5/7/2025 (9 AM-4:30 PM)
K2 Speaker | 4 A&A, 4 Other
K2 Technology Conference
Virtual
5/13-5/14/2025 (8:30 AM-4:30 PM)
Various K2 Speakers | 16 Various
SQMS Is Here: Are You Ready?
Virtual
5/15/2025 (8:30 AM-12 PM)
Jim Martin | 4 A&A
K2’s Accountant’s Guide to QuickBooks Online
Virtual
5/15/2025 (9 AM-4:30 PM)
K2 Speaker | 4 A&A, 4 Other
Build a Scalable (and Sellable) Firm Through Advisory Services
Virtual
5/16/2025 (12 PM-12:50 PM)
Adam Lean, The CFO Project 1 Other
Birmingham Tax Update In-Person
5/20/2025 (8:30 AM-12 PM)
Lisa McKinney | 4 Tax
Birmingham Sip & CPE In-Person
5/20/2025 (3 PM-5 PM)
Amanda Senn | 2 Ethics
K2 Excel Conference
Virtual
5/21/2025 (8:30 AM-4 PM)
Various | 8 Other
B & I Roundtable Series: Legislative Update
Virtual
5/21/2025 (12 PM-1 PM)
Rob Pearson & Kerry Underwood
2025 Beach Cluster In-Person
6/3-6/6/2025 (8:30 AM-2:10 PM)
Various | 24 Various
Taxation of Tax-Exempt Organizations
Virtual 6/10/2025 (8:30 AM-12 PM)
Greg Carnes | 4 Tax
GPT and Prompt Engineering for CPAs
Virtual 6/11/2025 (8:30 AM-10:10 AM)
Marc Hamilton | 2 Other
Excel CoPilot for Financial Automation and Reporting
Virtual
6/11/2025 (10:20 AM-12 PM)
Marc Hamilton | 2 Other
Power Query: Automating Data Cleanup and Report Preparation
Virtual
6/11/2025 (1 PM-2:40 PM)
Marc Hamilton | 2 Other
Power Automate for Accounting Workflows
Virtual
6/11/2025 (2:50 PM-4:30 PM)
Marc Hamilton | 2 Other
How to Identify and Talk with Your Clients about Impending Cash Flow and Profitability Issues
Virtual 6/12/2025 (10 AM-10:50 AM)
Ruth King | Other
Success Skills Series: Communication and Influence
Virtual
6/12/2025 (1 PM-2:40 PM)
Joel Hughes | 2 Personal Development
Performing an Agreed-Upon Procedures Engagement Under SSAE-19
Virtual
6/13/2025 (10 AM-11:40 AM)
Jim Martin | 2 A&A
2025 Annual Meeting
In-Person
6/17/2025 (8 AM-3:30 PM)
Various | 2 A&A, 1 Tax, 1 Ethics, 3 Other
Crypto Accounting: Are You Ready?
Virtual
6/19/2025 (10 AM-11:40 AM)
Jim Martin | 2 A&A
New Income Tax Disclosure Requirements: Are You Ready?
Virtual
6/19/2025 (1 PM-2:40 PM)
Jim Martin | 2 Tax
Peer Review Update
Virtual
6/20/2025 (8:30 AM-12 PM)
Mike Brand | 4 A&A
K2’s Next Generation Excel Reporting
Virtual 6/23/2025 (9 AM-4:30 PM)
K2 Speaker | 8 A&A
2025 Annual Update for Governmental Accountants and Auditors
Virtual 6/23/2025 (9:30 AM-3:40 PM)
Melisa Galasso | 6 Auditing
K2’s Better Productivity Through Artificial Intelligence and Automation Tools
Virtual 6/24/2025 (9 AM-12:30 PM)
K2 Speaker | 4 Other
Building Your Personal Brand as a CPA
Virtual
6/24/2025 (10 AM-11:40 PM)
Josh McGowan | 2 Other
K2’s QuickBooks for Accountants
Virtual
6/25/2025 (9 AM-4:30 PM)
K2 Speaker | 4 Other, 4 A&A
Navigating the Banking Landscape: Insight for CPAs
Virtual
6/25/2025 (12 PM-12:50 PM)
Mike Ross | 1 Other
International Tax Primer Series: Foreign Financial Assets
Virtual
6/26/2025 (10 AM-11:40 AM)
Alex McGowin | 2 Tax
K2’s Data Analytics for Accountants and Auditors
Virtual
6/26/2025 (9 AM-12:30 PM)
K2 Speaker | 4 Other
K2’s Mastering Advanced Excel Functions
Virtual
6/26/2025 (1 PM-4:30 PM)
K2 Speaker | 4 Other
Mobile Tax Update
In-Person
6/26/2025 (8:30 AM-12 PM)
Lisa McKinney | 4 Tax
Mobile Sip & CPE
In-Person
6/26/2025 (3 PM-5 PM)
Amanda Senn 2 Ethics
K2’s Technology for CPA’sDon’t Get Left Behind
Virtual
6/27/2025 (9 AM-4:30 PM)K2 Speaker | 8 Other
K2 AI Conference
Virtual
6/30/2025 (8:30 AM-4 PM)
Various | 8 Other
New Quality Management Standards: A Practical Approach to Risk Assessment and Response
Virtual
7/1/2025 (12 PM-2 PM)
AICPA Speaker | 2 A&A
New Quality Management Standards: ResourcesExpectations for Firms and Engagement Partners
Virtual
7/8/2025 (12 PM-1 PM)
AICPA Speaker | 1 A&A
Power BI Dashboards: RealTime Financial Visualization
Virtual
7/9/2025 (8:30 AM-10:10 AM)
Marc Hamilton | 2 Other
Advanced Power BI Techniques for CPA Dashboards
Virtual
7/9/2025 (10:20 AM-12 PM)
Marc Hamilton | 2 Other
Document Automation for Financial Professionals
Virtual
7/9/2025 (1 PM-2:40 PM)
Marc Hamilton | 2 Other
Budgeting and Variance Analysis with AI
Virtual
7/9/2025 (2:50 PM-4:30 PM)
Marc Hamilton | 2 Other
Accounting for Cryptocurrency and Utilizing AI
Virtual
7/10/2025 (10 AM-11:40 AM)
Josh McGowan | 2 A&A
S Corporations vs. LLCs and Partnerships: Strengths and Weaknesses
Virtual
7/14/2025 (8:30 AM-12 PM)
Greg Carnes | 4 Tax
New Quality Management Standards: What’s New for Firms’ Monitoring and Remediation Processes
Virtual
7/15/2025 (12 PM-1 PM)
AICPA Speaker | 1 A&A
SQMS Is Here: Are You Ready?
Virtual
7/15/2025 (8:30 AM-12 PM)
Jim Martin | 4 A&A
50 Reasons to Fire a Client
Virtual
7/15/2025 (1 PM-4:30 PM)
Jim Martin | 4 Other
K2’s Microsoft 365/Office 365All the Things You Need to Know
2025 Governmental Accounting & Auditing Forum Hybrid 12/8-12/10/2025
Various | 8 A&A, 2 Ethics, 2 Tax, 4 Other
Sherry Chesser, CPA, is a member of Landmark PLC, Certified Public Accountants in the Little Rock, Arkansas office and has over 30 years of experience in public accounting providing tax and audit services to a broad base of clients and experience as a controller for a nonprofit organization. Sherry currently serves on NASBA’s Peer Review Compliance Committee, Partners in Peer Review with Alabama Administrative Entity, and AICPA’s Peer Review Board. She’ll share her expertise on the new Quality Management Standards from the perspective of implementing best practices and answering the most frequently asked questions about this hot topic.
Bruce Ely Bradley
Alfonzo Alexander Alexander Success Group
Randy Johnston K2 Enterprises
Anoop Mehta, CPA Analytical Mechanics Assoc.
Staci Kolb, CPA University of Montevallo
Jim Martin City Visits: A&A in the Magic City In-Person
8/13/2025 (8:30 AM- 4 PM)
Jim Martin | 8 AA
Jim Martin City Visits: A&A in the Queen City In-Person
8/14/2025 (8:30 AM-4 PM)
Jim Martin | 8 AA
INSTRUCTOR Jim Martin
Jim Martin City Visits: A&A in the Rocket City In-Person
8/26/2025 (8:30 AM-4 PM)
Jim Martin | 8 AA
Choose from seven programs across the state and hear from Jim Martin as he gives his A&A Update.
Register for any of these programs by visiting alabama.cpa/city-visits.
Jim Martin City Visits: A&A in the River City In-Person
8/27/2025 (8:30 AM-4 PM)
Jim Martin | 8 AA
Jim Martin City Visits: A&A in the Shoals In-Person
8/28/2025 (8:30 AM-4 PM)
Jim Martin | 8 AA
Jim Martin City Visits: A&A in the Port City In-Person
9/10/2025 (8:30 AM-4 PM)
Jim Martin | 8 AA
Jim Martin City Visits: A&A in the Capitol City In-Person
9/11/2025 (8:30 AM-4 PM)
Jim Martin | 8 AA
We have a new format for our Beach Cluster conference in 2025, and the early bird discount deadline is only days away! Beach Cluster will be hosted earlier in the month with an additional day in our lineup and shortened days. That means more sea-side sun for everyone!
Enjoy engaging beach-side courses brought to you by a stellar lineup of instructors: Josh McGowan, Jim Martin and Alex McGowin. You have the flexibility of choosing what day(s) you want to attend and which courses peak your interest. Sign up for as many or as few as you want.
We also have an update to our schedule - Jim Martin is replacing his “Ways to Make Money Off CTA” course for a course with a more topical subject. Join him on the last day instead for “Peer Review Points All Firms Should Be Aware Of.”
Cluster Agenda
ASCPA Beach Cluster June 3-6
Hampton Inn & Suites
Orange Beach, AL
Tuesday, June 3
8:30 AM-12 PM 2025 Federal and State of Alabama Income Tax Update
Update on the Accounting Pipeline and Impacts to the CPA Profession
12:30-2:10 PM 50 Reasons to Fire a Client (or an Employer)
Accounting for Cryptocurrency
Wednesday, June 4
8:30 AM-12 PM Common Misappropriation and Fraud in Financial Reporting Schemes
Accounting for Difficult Transactions: Deferred Taxes, Pension, and Accounting Changes
12:30-2:10 PM SQMS - The Final Countdown
Ethical Failures: 2025 Edition
Thursday, June 5
8:30 AM-12 PM 2025 Accounting and Auditing Update
Auditing Update: Risk Assessment and Quality Management
12:30-2:10 PM CPAs CAN Go to Jail for Ethical Lapses
Private Equity and the Accounting Industry
Friday, June 6
8:30 AM-12 PM 2025 Compilation, Preparation, and Review Update
Foreign Financial Accounts and General Outbound
12:30-2:10 PM Peer Review Points All Firms Should Be Aware Of
Correcting Delinquent International Filings
Agenda
July 20
5 p.m. K2’s Technology Update with Tommy Stephens, K2 Enterprises (Optional 1.0 CPE)
July 21
8 - 11:40 a.m. Tax Update with Lisa McKinney, CPA
July 22
8 - 9:40 a.m. QM Standards with Randy Milligan, Landmark CPAs
10 - 11:40 a.m. Economic Update with Joe Crosby, MultiState Associates, Inc.
July 23
8 - 9:40 a.m. Professional Issues Update with Barry Melancon, Retired CEO of AICPA
10 - 11:40 a.m. AI/Cybersecurity with Paul Perry, Warren Averett
July 24
8 - 11:40 a.m. Accounting & Auditing Update with Kurt Oestriecher, Oestriecher & Company
July 25
8 - 9:40 a.m. Fraud with Parker Still, FBI
10 - 11:40 a.m. Deep Work with Kenny Broom, MG Stover
Congratulations to Alabama’s newest CPA Licensees
The following individuals have successfully passed all four parts of the CPA exam - Congratulations!
Avery Taylor Beasley, Ozark
Parker Smith Allen, Homewood
Lauren Haley Austin, Fayetteville, TN
Jane Woods Barber, Pell City
William Houston Belski, Helena
Megan Nicole Boyd, Killen
Jaileigh Nicole Burch, Deatsville
Matthew Reed Cummings, Fayette
Margaret Frances Davis, Daphne
Victoria Lynn Downing, Arlington Heights, IL
Jamison Bailey Eubanks, Birmingham
Adam Grant Fekula, Madison
Emily Hajduk, Atlanta, GA
Tara Hazelbaker, Gulf Shores
Lane Thomas Hutcheson, Birmingham
Andrew Christopher Jones, Leeds
Robert Jackson Kline, Huntsville
Oleksandr O. Kovalov, Birmingham
Alyssa Frederick Macomb, Stanton
Tina Malik, Pike Road
Zachary Grant McClain, Cullman
Caroline Frances Phillips, Birmingham
Sherrod James Postell, Atlanta, GA
William Alexander Redding, Huntsville
Brooks Bishop Reinhardt, Huntsville
Bryson Michael Sanders, Slocomb
Christopher Tate Sparkman, Livingston
Kyle Wesley Steading, Calera
John E. Surrette Jr., Coventry, RI
Jackson Lee Turner, Florence
April Browning Warner, Tuscaloosa
Rebekah Arnold Webb, Hoover
These individuals completed all four parts of the CPA exam between Feb. 1 - Mar. 31, 2025.
ALOnDemand
ASCPA is continuing its partnership with CPA Crossings - one of the foremost providers of quality professional education for CPAs - to offer an on-demand learning solution called ALOnDemand. More than 140 curated courses are available covering a wide range of topics in accounting and auditing, tax, technology and more.
A subscription for 2025 will provide unlimited access to all ALOnDemand courses and unlimited CPE credits during the calendar year.
The ALOnDemand subscription gives you the freedom to take CPE when and where you want! Take advantage of this deal only available to ASCPA members.
To learn more visit alabama.cpa/ALOnDemand.
Now Open! Applications
Alabama Mobile Workforce/Remote Worker Legislation Could Impact Many of Your Clients
By Bruce P. Ely, James E. Long, Jr., and William T. Thistle, II
Chair of the House Ways & Means-Education Committee, Rep. Danny Garrett (R-Trussville), introduced House Bill 379 during Alabama’s current legislative session, which is designed to provide guidelines and a safe harbor for employers who have traveling employees or remote workers. As passed out of committee (although not originally), the bill is based on model legislation drafted and supported by the Council On State Taxation (“COST”), American Institute of Certified Public Accountants (“AICPA”) and other business associations. COST and the AICPA are advocating passage of the uniform law across the country six states so far have enacted it in whole or in large part. Coincidentally, U.S. Senate leader John Thune (R-South Dakota) recently introduced federal legislation, S.1443, to the same end.
In short, if your client has a traveling or remote employee working in a state with this model act for less than 31 days in a calendar year, your client or business (the employer) isn’t required to register with that state’s taxing authorities or withhold and remit that state’s income tax from the employee’s wages.
However, if the employee works more than the safe harbor number of days, he or she is subject to income tax withholding in that state retroactively to the first day of his or her presence in that state. But no penalties or interest can be assessed on the catch-up payment from the employer.
According to the helpful map published by the Tax Foundation on April 15 (see below), Alabama is one of several states that asserts tax jurisdiction over a nonresident employer and its employees if they work in this state more than one day in a year (note that Illinois should be listed as 30 day threshold state in the map below because it has adopted the model legislation).
Through the efforts of Rob Pearson, Alabama Society of CPAs Governmental Affairs Director, Jon Barganier, President of Manufacture Alabama, COST and other business associations, a committee amendment was proposed to more closely conform House Bill 379 with the COST/AICPA model act – and another amendment added an exemption for employers with nonresident employees who enter Alabama to conduct disaster relief efforts. The bill, as amended, passed unanimously out of the House Ways & Means-Education Committee on April 16. We understand that Rep. Garrett is cautiously optimistic that the bill can be passed this legislative session. If your client or business has traveling or remote workers, this bill should be important to you. Organizations supporting the bill, as amended, include the Alabama Society of CPAs, Manufacture Alabama, COST, and the AICPA.
If you wish to review a copy of the COST report or the support letter filed by the AICPA, contact Bruce (bely@bradley.com), Jimmy (jelong@bradley.com) or Will (wthistle@bradley.com)
Accounting has long been typecast as a career of calculators, cubicles, and long hours. But according to Jamey Carroll, that perception is due for a major overhaul.
“We definitely work hard,” Carroll acknowledged. “But there are plenty of professions out there—engineers, for example—that put in just as many hours. What I’d really like to see is a shift in how people view what we do.”
That shift, Carroll believes, is essential to attracting top-tier talent to the profession.
Cheyenne Sandlin agreed, though her outlook is more focused on preserving the positive momentum already in motion. “We’ve had a lot of success with recruiting,” she said. “Huntsville’s growth has really helped us. We’ve even had to renovate our office to make space for all the new hires.”
We sat down with Carroll and Sandlin to dig deeper into the evolving state of the CPA profession, their personal journeys, and what the future holds for accounting.
ASCPA: Tell me about your journey within the accounting profession, and how have you been given opportunities to succeed?
JC: It truly amazes me when I step back and think where I am, compared to where I ever thought I would be. When I took accounting in college I had no idea what that even meant my career would look like. Over these years I’ve had the opportunity to work at a couple of really great firms, and I’ve worked with awesome CPAs across the state. I’ve gotten to make great relationships with CPAs at other firms across the state. I’ve gotten to be involved at state and national levels, with our Society and AICPA. I mean, the fact that a kid from Hazel Green High School is sitting here having been a past chair of the State Society, been on the council for the AICPA - it just really blows my mind. I entered a career I had no idea could do that for me, and hear all those things have happened, and now I’m a partner in a top 100 firm. We work with great people. We have great clients. I see clients that are humongous – some that build skyscrapers to some that build missiles. It’s just unbelievable, to me, where my career has gone.
Huntsville’s growth puts pressure on local accounting industry
By Heather Price
As Huntsville continues its rapid expansion, the city’s Certified Public Accountants are feeling the pressure.
The growth has increased the demand for accounting services, yet according to several Huntsville-area CPAs, the number of CPAs in the area is not keeping pace. Industry experts say this gap is driven by a combination of veteran accountants retiring and a declining number of students pursuing careers in accounting.
“Huntsville has grown tremendously over the last decade, yet the number of CPAs seems to be decreasing here,” said Jeff Brown, CPA, CFE, of Henry & Brown Certified Public Accountants. “Several older CPAs have retired and sold or closed their businesses, but they are not being replaced quickly enough.”
Brown has attempted to recruit CPAs to Huntsville but finds that many professionals are drawn to larger cities like Nashville or Atlanta, unaware of the opportunities in North Alabama.
“Fewer people seem to be going into accounting because the degree sometimes takes longer, or they do not want to work the busy season schedule,” Brown said.
The Struggles of Recruitment and Retention
The struggle to attract and retain accountants is not unique to Huntsville—it’s part of a national trend.
According to the Association of International Certified Professional Accountants (AICPA), the number of CPAs in the U.S. has remained stagnant for years, with the profession peaking in 2012 at 1.28 million accountants. While numbers briefly declined in 2013, they recovered by 2019 but have since plateaued.
Meanwhile, fewer people are sitting for the CPA exam, with candidate numbers dropping 7% between 2017 and 2018, and university enrollments in accounting programs declining by 4% from 2016 to 2019. This ongoing trend contributes to the talent shortage, making it harder for businesses to find qualified accountants.
Greg Carnes, PhD and the Dean of the Sanders College of Business and Technology at the University of North Alabama, said universities across the nation have seen a decline in accounting enrollments over the last decade, although this decline has recently stabilized and enrollments were up slightly last year.
While UNA has not experienced a decline in accounting majors, Carnes said the national decline is concerning. “While it is difficult to pinpoint the cause of the decline, it is partly due to the growth in demand for data analytics majors, and some students have chosen data analytics as a major rather than accounting,” Carnes said.
Aaron Pennington, CPA, President and Owner of Pennington & Associates CPA, believes traditional CPA firm models may be part of the problem.
“If you listen to the AICPA and state society, they say we have a shortage of CPAs, but they focus on the wrong reasons,” Pennington said. “The reality is the work isn’t glamorous, and typical public accounting firms work their staff to the bone, so students don’t want to be a part of it. This recent trend of CPA firms selling out to private equity, which removes the only real draw for new employees—making partner one day—only makes the problem worse.”
Paul Lindgren, CPA, of Honeycomb CPAs & Advisors, points to two additional factors hindering industry growth: the diversion of young talent and competition with private industry. Many young professionals interested in accounting are being steered away from traditional CPA roles into niche specialties, leaving small businesses underserved.
“In Huntsville, very few accountants are willing to work in CPA firms over tax season when they can take corporate roles in Research Park and get paid 20 percent more,” without the grueling hours, Lindgren said.
A Changing Industry Demands New Approaches
To counteract these trends, firms like Honeycomb CPAs & Advisors are embracing new technology and integrating Artificial Intelligence tools to improve efficiency and attract new talent.
“It’s been the model of the CPA practice to be hierarchical, like the legal profession,” said Honeycomb’s Brad Garland, CPA. “You start small and work your way up to be a partner someday. But that whole model is shifting.”
If CPAs are going to thrive in this environment, Garland said, they have to completely change their business model. As older accountants retire and demand for services continues to grow, Huntsville firms must adapt.
“There’s a lot of young CPAs right now who are probably pretty disheartened with the direction the industry is taking now that private equity is starting to dip its hand into our profession,” Garland explained. “It really is all about attracting new talent, encouraging their growth, and meeting the lack of supply of CPAs.”
Growth and New Developments in Huntsville Accounting
UNA’s Carnes agreed that Huntsville’s rapid growth in recent years has significantly increased the demand for the services of CPAs and noted that several new CPA firms have entered the Huntsville market. Notable recent developments include:
• Pennington & Associates CPA acquired Huntsvillebased Cyntax, founded in 2005 by Cindy Hunt, EA.
• Aldridge Borden expanded into Huntsville in January through a strategic partnership with LeCroy CPA Group and Mercer & Associates.
• Strawn Sanderson was created by a partnership between Will Strawn, CPA, and Terry Sanderson, CPA.
• Honeycomb CPAs & Advisors was formed in 2024 by Brad Garland, CPA, Paul Lindgren, CPA, and Pete Shinkunas, CPA.
While Huntsville’s booming economy presents challenges for the local accounting industry, it also creates opportunities for firms willing to innovate, embrace new technologies, and rethink traditional CPA firm structures.
A Framework for Maintaining Ethics Compliance
By Sarah Beckett Ference, CPA
Defending a professional liability claim can be complicated. The plaintiff and CPA firm defendant often disagree about the scope of service, the amount of damages, the firm’s compliance with the applicable standard of care, and more. Resolving these differences becomes more difficult if the firm’s independence, integrity, or objectivity is brought into question. Indeed, the mere suggestion of a potential independence violation or conflict of interest can negatively affect or thwart an otherwise good defense.
Consider the following claim made against a CPA firm in the AICPA Professional Liability Insurance Program:
A CPA firm performed an audit of a fund of funds for many years. The attest client’s CFO had previously worked for the CPA firm and had started on the same day as the firm’s engagement partner. The attest client invested in a number of hedge funds. During an economic downturn, many of these hedge funds failed and were discovered to be Ponzi schemes. The client subsequently declared bankruptcy, resulting in a complete loss to its investors. The investors filed a $20 million claim against the audit firm, asserting that more information about the funds should have been disclosed in the financial statement notes. Had these disclosures been made, the investors asserted they would have redeemed their shares prior to the bankruptcy.
An expert hired by the CPA firm’s insurance company opined that the firm’s audit work and documentation appeared to comply with the applicable standard of care. However, concern was raised regarding emails between the audit partner and the attest client CFO that suggested the CFO leveraged his relationship with the partner and firm to modify disclosures related to the hedge funds. The claim ultimately settled.
The AICPA Code of Professional Conduct (the Code), state board of accountancy rules, and other sources identify situations that may impair independence or threaten a CPA’s
integrity or objectivity. However, the standards do not, and cannot, address and provide an answer for every situation.
Enter the conceptual framework (see the “Conceptual Framework for Members in Public Practice” (ET §1.000.010)) and its application to independence (see the “Conceptual Framework for Independence” (ET §1.210.010)) and conflicts of interest (see the “Conflicts of Interest for Members in Public Practice” interpretation (ET §1.110.010)). This framework provides a methodology for identifying, evaluating, and addressing threats to compliance with the Code resulting from a specific relationship or circumstance not otherwise explicitly addressed in the Code. The structured thought process provided by the conceptual framework helps CPAs to reflect upon a set of facts and arrive at a reasoned conclusion.
Easy as 1-2-3 (and 4)
The Code lays out a simple, three-step approach. From a professional liability perspective, an additional step is suggested.
Step 1: Identify threats
The Code recognizes that most threats to compliance can be categorized into seven types:
• Adverse interest: When the CPA’s interests are in opposition to the client’s.
• Advocacy: Promoting the client’s interests or position.
• Familiarity: Being too sympathetic to the client’s interests due to a long association between the CPA and the client.
• Management participation: Taking on a management role or assuming management responsibilities for a client.
• Self-interest: Benefiting, financially or otherwise, from an interest in or a relationship with a client.
• Self-review: The inability to appropriately evaluate evidence, judgments, or services performed by the CPA or the CPA’s firm.
• Undue influence: Subordination of the CPA’s judgment to a client or third party.
Professional liability claims include allegations of familiarity threats more than other threats. Longtime clients, casual emails, and an engagement team with multiple years of experience with the client all may pose familiarity threats. Management participation and/or self-review threats may exist when nonattest services are delivered to an attest client. A self-interest threat may exist if client fees constitute a significant portion of the firm’s revenue. An engagement team brainstorming session may help identify threats not previously considered.
Step 2: Evaluate the significance of identified threats
Evaluate the significance of each identified threat to determine if it is at an acceptable level. For many threats, the Code provides specific guidance regarding which threats cannot be reduced to an acceptable level and, thus, impair independence or result in a conflict of interest. For all other threats, the evaluation of their significance should be viewed in the context of a “reasonable and informed third party who is aware of the relevant information” (see paragraph .07 of the “Conceptual Framework for Members in Public Practice”) and include both qualitative and quantitative factors. To help mitigate professional liability risk, consider evaluating the significance of the threats from the perspective of a plaintiff’s attorney and potential jurors. A plaintiff’s attorney will use all available evidence, including emails, to discredit the CPA. Jurors will be influenced by other factors beyond the expert testimony, such as their own perception of what a CPA should be responsible for. Unfortunately, hindsight does not typically favor the CPA.
Step 3: Identify, evaluate, and apply safeguards
If the identified threat is not at an acceptable level, safeguards — actions or other measures that may eliminate the threat or reduce it to an acceptable level — should be identified and applied. For some threats, a single safeguard
may be appropriate. For others, multiple safeguards may be more effective. The Code identifies several examples of safeguards created by the profession or that can be implemented by the firm or client. The effectiveness of a particular safeguard depends upon many factors, including how it is applied and who applies it, whether the client is a public interest entity, and more. CPA judgment is involved in making this determination.
Step 4: Document and share
Documentation, one of a CPA firm’s most important allies in claim defense, is especially important in areas involving CPA judgment, including the evaluation of independence threats and potential conflicts of interest. Therefore, in addition to the Code’s documentation requirements, consider documenting the firm’s evaluation process, not just the outcome. Documentation could include how the evaluation was performed and the factors considered when evaluating the significance of a threat or the appropriateness of a safeguard. In a claim situation, a CPA firm’s judgment and conclusions may be questioned or challenged. A lack of documentation allows a plaintiff’s attorney to draw his or her own conclusions, which may differ from the CPA’s.
Share the evaluation and conclusion with engagement team members and even the client, especially if these parties are responsible for implementing safeguards. Consider including the client’s responsibilities regarding any safeguards under their purview in the engagement letter or other client communication.
Applying the Conceptual Framework to Other Ethics Considerations
Questions of independence are problematic in defense of attest claims. Questions of integrity or objectivity, especially those related to conflicts of interest, are problematic in defense of claims related to nonattest services. To help mitigate this risk, consider applying the conceptual framework approach to any relationship or circumstance that threatens the CPA’s compliance with the Code.
By: Dr. Amelia Hart, CPA, and Steve Sledge, CPA
Preparing for the Quality Management Standards: Key Points and Resources for Implementation
In 2022, the Tennessee CPA Journal reported on the newly released quality management standards (QMS).1 Today, with the effective date approaching, we provide important reminders and a discussion of (and reference to) some helpful resources for sole practitioners, small to medium firms, and other stakeholders.
Quality management refers to a suite of standards that includes three American Institute of CPAs (AICPA) Statements on Quality Management Standards (SQMSs), one AICPA Statement on Auditing Standards (SAS), one AICPA Statement on Standards for Accounting and Review Services (SSARS), and one AICPA Statement on Standards for Attestation Engagements (SSAE).2 These composite standards outline the requirements for quality
management in firms providing audit and attestation services. Two important dates related to the new system of QMS are:
• Implementation deadline: Systems must be implemented by Dec. 15, 2025.
• Review deadline: Systems must be established for review by Dec. 15, 2026.
This article reminds readers of the key points of the new QMS and also provides links to some of the resources available to firms, which range from videos, implementation guides, planning checklists and practice aids.
Replaces
SQMS No. 1: A Firm’s System of Quality Management
SQMS No. 2: Engagement Quality Reviews
SAS No. 146: Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards
SSARS No. 26: Quality Management for an Engagement Conducted in Accordance With Statements on Standards for Accounting and Review Services
SQMS No. 3: Amendments to QM Sections 10, A Firm’s System of Quality Management, and 20, Engagement Quality Reviews
SSAE No. 23: Amendments to the Attestation Standards for Consistency With the Issuance of AICPA Standards on Quality Management
Establishes requirements and guidance for a firm’s system of quality management so that it is comprehensive and tailored to the firm under a risk-based approach that involves eight iterative elements.
Sets requirements for policies and procedures addressing the appointment and eligibility of engagement quality (EQ) reviewers and performance of engagement quality reviews (EQRs) when an EQR is determined to be an appropriate response to quality risk under SQMS No 1.
Provides guidelines for quality management during engagements conducted according to GAAS.
Amends the Accounting and Review Services sections to align with SAS No. 146.
SQCS No. 8: A Firm’s System of Quality Control (QC section 10)
SQMS No. 3 amends standards:
• SQMS No. 1, QM section 10
• SQMS No. 2, QM section 20 Aligns both SQMSs above with the language used in SAS No. 149.
Amendment to integrate:
• SQMS No. 1: A Firm’s System of Quality Management
• SQMS No. 2: Engagement Quality Reviews
• SAS No. 146: Quality Management for an Engagement in Accordance With GAAS
• SSARS No. 26: Quality Management for an Engagement Under SSARS
SAS No. 122: Statements on Auditing Standards: Clarification and Recodification, as amended, section 220 (AU-C section 220)
Table 1: Summary of the QMS Suite of Standards
Key Points of the QMS
The system of quality management enhances a firm’s quality control by incorporating a risk-based approach and a risk assessment process tailored to the firm’s specific circumstances. The new QMS include the following standards that are codified by the AICPA.3
• SQMS No. 1: A Firm’s System of Quality Management
• SQMS No. 2: Engagement Quality Reviews
• SAS No. 146: Quality Management for Engagements Under Generally Accepted Auditing Standards
• SSARS No. 26: Quality Management for Engagements Under Accounting and Review Services
• SQMS No. 3: Amendments to QM Sections 10, A Firm’s System of Quality Management, and 20, Engagement Quality Reviews
• SSAE No. 23: Amendments to the Attestation Standards for Consistency With the Issuance of AICPA Standards on Quality Management
Summary of SQMS No. 1: A Firm’s System of Quality Management
SQMS No. 1 outlines a firm’s responsibilities to design, implement and operate a system of quality management for its accounting and auditing practices. This standard requires firms to establish policies and procedures for engagement quality reviews, with SQMS No. 2 addressing the specifics of reviewer appointment, eligibility, performance and documentation. The SQMS should be considered in conjunction with other professional standards and the AICPA Code of Professional Conduct.
SQMS No. 1 addresses eight components of a firm’s system of quality management: risk assessment, governance and leadership, ethical requirements, client relationships and engagements, engagement performance, resources, information and communication, and monitoring and remediation.
Summary of SQMS No. 2: Engagement Quality Reviews
SQMS No. 2 focuses on the appointment and eligibility of the EQ reviewer, as well as their responsibilities in performing and documenting EQRs. This standard applies to all engagements determined to require an EQR in response to the assessment of quality risk under SQMS No. 1, which includes addressing assessed quality risks. The SQMS should be considered alongside the AICPA Code of Professional Conduct and other relevant ethical requirements.
SQMS No. 2 emphasizes that the firm is responsible for designing, implementing and operating its system of quality management, which includes establishing policies or procedures for EQRs.
Summary of SAS No. 146: Quality Management for an Engagement Conducted in Accordance With Generally Accepted Auditing Standards
This standard provides guidance on how firms should manage quality for engagements conducted in accordance with GAAS. It emphasizes the need for continuous monitoring and remediation to ensure that quality issues are identified and addressed in a timely manner.
SSARS No. 26: Quality Management for an Engagement Conducted in Accordance With Statements on Standards for Accounting and Review Services
Similar to SAS No. 146, this standard provides guidance on managing quality for engagements conducted in accordance with standards for accounting and review services.
Summary of SQMS No. 3: Amendments to QM Sections 10, A Firm’s System of Quality Management, and 20, Engagement Quality Reviews
The amendments to Quality Management (QM) sections 10 and 20 are linked to the prior SQMS Nos. 1 and 2. SQMS No. 3 was issued to create alignment with the wording found in SAS No. 149, Special Considerations — Audits of Group Financial Statements (Including the Work of Component Auditors and Audits of Referred-to Auditors).4 The amendments ensure consistency in terminology within SAS No. 149 to create a synergy across the standards.5
SQMS No. 3 also provides guidance on differentiating between a resource and an information source:
• Resources are actively used to perform tasks and achieve objectives within the quality management system. They can be internal or external assets directly involved in engagements.
• Information sources provide necessary data and insights that support audit evidence and decision-making but do not directly perform tasks.
Table 2: Understanding the Difference Between Resources and Information Sources
Example Term Description
Resource Information Source
Internal or external assets used in performing activities within the firm’s system of quality management or engagements.
Entities or reports that provide information to be used as audit evidence.
• Component auditor used in performing a group audit.
• Auditor’s external expert used in performing an audit.
• Referred-to auditor’s report providing information as audit evidence.
• Predecessor auditor, accountant, or practitioner providing information about opening balances or consistency of accounting principles.
• Service auditor issuing a report on a service organization’s controls (unless further procedures are requested for the engagement).
Staying Active Through Success Season
BMSS offers a different approach to staying healthy and active each month through our Wellness Way initiative. In March, our team members who had been training participated in a race through Homewood!
Mardi Gras At BMSS
Our Mobile office’s balcony overlooks the Mardi Gras parades’ route, welcoming the festivities and people celebrating the season.
Accounting Today’s New Rankings
We were thrilled to be named the #81 largest firm in America by Accounting Today, up from #86 in 2024! With the addition of our Mobile office, five new Members, and over 50 team members, 2024 was filled with growth. We are so thankful for our stellar team, clients, and firm friends who have made this achievement possible!
Meet the GCs
A few of our construction accounting experts enjoyed another year at SubAla’s Meet the GCs event.
Jackson Thornton Principals Honored
Jackson Thornton, a certified public accounting and consulting firm headquartered in Montgomery, AL, is pleased to announce that two of its principals have recently been honored by CentrAL INC magazine.
Allison Guice, a financial advisor and principal with Jackson Thornton Wealth Management was named a 2025 Woman to Watch. These CentrAL INC profiles feature a woman making a significant impact in the local business or nonprofit community while advancing in her career. Guice was featured in the March/April issue.
Erica Bailey, a principal in Jackson Thornton’s Audit & Accounting line of business, was named to the publication’s 2025 40 Under 40 List. The List celebrates leaders shaping the future of Central Alabama’s business community. These professionals stand out for their expertise and strong commitment to creating a positive impact in our local communities.
Jackson Thornton Named to USA Today’s Best Tax & Accounting Firms List
Jackson Thornton, a certified public accounting and consulting firm headquartered in Montgomery, AL, is pleased to announce that it was named as one of America’s Best Tax & Accounting Firms for 2025 by USA Today.
USA Today and market research company Statista partnered to create the list, which considered 3,500 survey responses from peers and clients. In total, only 100 companies were awarded the title of America’s Most Recommended Tax Firms 2025 and 100 companies were awarded the title of America’s Most Recommended Accounting Firm 2025.
“This is a direct testament to the level of service that we provide to our clients,” remarked John Fendley, President & CEO of Jackson Thornton. “We always strive to be the best and it’s nice to be recognized by a national publication. We thank our team for their efforts that resulted in this recognition.”
Jackson Thornton has enjoyed recognition in numerous surveys over the years, including its current rank among the nation’s Top 200 accounting firms by Accounting Today magazine and as one of Forbes magazine’s “Best Tax and Accounting Firms.”
Guice
Bailey
Mauldin & Jenkins Rises to No. 65 on Accounting Today’s 2025 Top 100 Firms List
Mauldin & Jenkins, a leading assurance, tax, consulting and advisory firm, is proud to announce it has climbed three spots to No. 65 on Accounting Today’s prestigious Top 100 Firms list.
This achievement reflects the firm’s sustained growth and continued success, marked by a 15% increase in revenue and an impressive 11% expansion in staff over the past year. These indicators not only demonstrate the firm’s strong financial performance and efforts to attract top talent, but also reinforce its standing as a Regional Leader in the Southeast.
The firm’s growth is driven by its strong foundation in traditional attestation services, along with the strategic enhancement of its advisory practice. This includes the continued development of its Client Accounting and Advisory Services (CAAS) practice and a heightened focus on key areas such as Transaction Advisory Services (TAS), Specialty Tax, and Cybersecurity.
In addition to providing more comprehensive solutions, the firm has also spent the past year prioritizing client experience and retention to deliver the best possible value and service.
Speaking on the firm’s progress, Managing Partner Hanson Borders shared, “We are honored to be recognized among such talented firms in the Top 100. As we celebrate this milestone, we will remain focused on the future; we will keep investing in our people, embracing innovation, and expanding our capabilities to better serve our clients.”
YOUR PRACTICE WANTED
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For more information on these listings or to sell your practice, contact Lori Newcomer, CPA and Tim Price, CPA at (888) 553-1040 or PNgroup@APS.net, or visit www.APS.net.
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• NEW! Jackson County, MS Gulf Coast $275k
• MS Gulf Coast $625k
• Virtual Payroll Service $717k
• North Metro Atlanta Area $2.55M (Sale Pending)
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For more information contact Kathy Brents, CPA, CBI at 866.260.2793 or Kathy@AccountingBizBrokers.com. Visit us online at www.AccountingBizBrokers.com .
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