Arizona State Board of Accountancy Update

The COVID-19 global pandemic turned the workplace on its head over a year ago. While the Arizona State Board of Accountancy (Board) had a strategic vision to improve its operations, the pandemic and the challenges it presented expedited the work on key Board objectives.

By Monica Petersen

The silver lining that the Board and many companies faced, is that with every huge disruption, there is also a significant opportunity. The pandemic has led to a transformation in how the Board operates; and, the shift will continue to benefit the Board’s operations and the applicants and registrants it serves long after the pandemic is in our rear-view window. The following are a few examples of how an increased reliance on technology has transformed the work of the Board and its advisory committees. 2. Webforms – The Board is pleased to announce the release of new webforms for Uniform CPA Exam applicants to complete initial or re-exam applications, for certification applicants to complete their certification applications by exam/grade transfer or reciprocity by substantial equivalency, and for any applicant or registrant wishing to complete a change of address form. These new webforms replace the

Board’s prior fillable PDF forms. The webforms provide the following customer service, convenience and efficiency improvements: a. Webforms are dynamic, based on responses which provide for a cleaner more streamlined user experience. b. Webforms can be saved and finished later. c. Webform attachments can be uploaded as required. d. Webforms provide data validation to ensure it is complete and accurate before the webform will be accepted. e. Webforms can be e-Filed and credit card payments are accepted. f. E-file helps ensure instant delivery and saves the user’s time from mailing or delivery. g. E-file will provide a confirmation receipt to the user via email. h. Webforms ensure no lost or misplaced paperwork. The webform is accessed through the internet via a secured connection and established profile.

As time and resources allow, the Board will continue to add to its offerings of webforms in an effort to add value to the customer service experience with the Board. 3. Document Management System (DMS) – Documents, whether electronic or paper, are an essential component of just about any enterprise. Managing business information, sometimes from several sources, can be a challenging task. A document management system that captures, stores and retrieves both paper and electronic documents offers many benefits. The

Board is working on its final strategy to improve its records retention, which is the adoption of a DMS, which will be completed this fiscal year. Some benefits include reduced physical storage space; enhanced security; easier retrieval; better collaboration, backup and disaster recovery; and improved business continuity.

Finally, the pandemic did not slow down the work of the Board to modernize and improve its rules. The Board amended a few rules which became effective August 1, 2021. On July 22, 2021, the Board sent an email to all CPAs and CPA firms with an email address on file with the Board about the changes; but, if the email was missed or you don’t have an email on file with the Board, the provisions are summarized below.

1. Virtual Meetings – During the pandemic, the Board and most of its advisory committees were able to quickly pivot to virtual meetings. While some committees have looked forward to getting back to work as they did before the pandemic, others are quite happy with the new flexibility that remote work has afforded. While nearly 50% of Arizonans are fully vaccinated and the safety of in-person work is increasing, work culture has changed and full virtual or hybrid (some in-person attendance and some virtual participation) are likely a mainstay. One of the more positive outcomes of introducing virtual meetings is the ability for the public to participate in a board or committee meeting regardless of where they live in

Arizona or where they may be in the world on the date of any particular meeting.

1. Requires that CPAs and CPA firms registered with the

Board notify the Board of an email change of address in addition to a business, mailing or residential change of address within 30 days. 2. Permits the Board to accomplish service of most documents by attaching the document to an email and sending it to the email address last provided to the Board, in addition to personal service or service by mail.

As the Board has worked to modernize its operations, it has increased its reliance on email to provide service to registrants in an efficient and cost-effective manner.

Historically, emails have been used primarily for things like registration renewal reminders for CPAs and CPA firms; important updates to Arizona Revised

Statutes, Arizona Administrative Code, or Board substantive policy statements; or any other matter like the impact of an Executive Order on the Board’s operations or its applicants and registrants. The added requirement to have registrants update their email addresses provides the Board an opportunity to evaluate its business processes and determine where email may be used in lieu of regular mail to improve the efficiency and cost-effectiveness of the Board’s operations. If you don’t currently have an email on file with the Board, we’d encourage you to fill out a

Change of Address form to provide it. 3. Allows CPE credit to be earned for the writing or development of online course curriculum for undergraduate, graduate or doctoral education that contributes to the accounting profession. 4. Updates incorporations by reference for peer review and the AICPA Code of Professional Conduct.

5. Updates the timeframe that the Board may grant a

Notice to Schedule (NTS) extension based on good cause to a Uniform CPA Exam applicant from one testing window to 90 days in response to testing windows being replaced by continuous testing. 6. Provides authority for the Board to grant a 90-day extension to a conditioned credit for Uniform CPA

Exam Applicants based on good cause. 7. Delineates the required attachments for an applicant applying for certification under A.R.S. § 32-4302 regarding universal licensing.

A copy of the Notice of the Final Rulemaking can be found on the Board’s website – www.azaccountancy.gov - under News and Updates. l