What is the National Association of State Boards of Accountancy?
Let me explain what the National Association of State Boards of Accountancy, or NASBA, really is. It's a nonprofit organization that directly supports the 55 state and U.S. territory boards of accountancy. These boards oversee the accounting profession across the United States and handle the administration of the Uniform CPA Examination.
You should know that public accountancy is regulated at the state level. Each state has its own independent board of accountancy that sets and enforces the standards for the profession.
Key Takeaways on NASBA
Here's what you need to grasp: NASBA serves those 55 state and territory boards directly. Contrary to what many believe, NASBA does not administer the Uniform CPA Examination—that's a requirement for all accountants aiming to become licensed CPAs.
That said, NASBA does provide essential services to help CPAs transfer their licenses from one state to another, making mobility in the profession more straightforward.
Understanding NASBA in Depth
NASBA was established in 1908 to consolidate best practices in the accounting profession, all for the sake of protecting the public that depends on reliable financial reporting.
I want you to recognize that a strong economy relies on trust, and without accurate accounting, that trust erodes. NASBA's core mission is to uphold public confidence in the profession, particularly following major accounting scandals at companies like Enron and WorldCom.
The association keeps a close eye on legislative and regulatory issues affecting the accounting field and provides feedback where needed.
NASBA's Role in CPA Training and Licensing
NASBA operates training and education programs for accountants preparing for the certified public accountant (CPA) exam. But let's be clear: NASBA does not create the content or administer the exam itself. That responsibility falls to the American Institute of Certified Public Accountants (AICPA), which incorporates input from NASBA and the state boards.
One critical function NASBA handles is licensing. Since CPA licenses are issued at the state level, if you move to another state as a CPA, you'll need a new license. NASBA manages the National Qualification Appraisal Service to ensure your qualifications are recognized in the new state.
NASBA's Activities and Structure
NASBA organizes regional and national meetings every year, issues comment letters and white papers, and releases its own annual report. As of April 2021, the association's board includes five officers, eight regional directors, and nine directors-at-large.
