What even is a NASBA?

The Professional Bodies Explained: Learn about the governing bodies with me! 

If you have spent a bit of time in the accounting world, either in school or professional life, you have probably heard the names; NASBA, AICPA, and State Board. And to be honest, I never really understood the point of each one, so let’s take a second to learn what these organizations do!

NASBA: National Association of State Boards of Accountancy

NASBA calls itself “the Forum for the nation’s 55 State Boards of Accountancy.” So for me this makes me think they are the big dogs, the ones in charge of everything. NASBA are also the ones who administer the CPA exam, however they do not create the exam.

NASBA’s mission per their website is; to Enhance the effectiveness and advance the common interests of the Boards of Accountancy. So basically they make sure that all the state boards are operating effectively.

NASBA is responsible for ensuring that the accounting profession is holding itself to the highest standards of quality and integrity so as to keep public trust strong. If citizens do not trust and respect the accounting profession then the whole economy is basically built on quicksand.

They basically want to prevent another Enron/Aurthur Andersen situation.

NASBA’s role in ensuring this public trust is maintained is to

• Manage and regulate each state board

• Respond to possible new regulation and legislation which may impact the profession

• Hold annual conferences

• Publish whitepapers and annual reports

Overall, NASBA’s main responsibility is to serve the accounting industry to make sure accountants are being safe, smart, and ethical so that we maintain trust with the general public.

AICPA: American Institute of Certified Public Accountants

The American Institute of Certified Public Accountants (AICPA) is the world's largest professional organization for certified public accountants, setting ethical standards, developing auditing and accounting standards, and advocating for the accounting profession's interests.

The AICPA’s mission per their website is; To drive accounting and finance to the future by giving you the support, skills, and insights to meet the demands of a constantly changing world.

So essentially, the AICPA is the go to place for CPA’s to access resources and tools for being the best CPA they can be.

The AICPA undertakes their mission by advocating for the profession by educating and communicating with local, state, and national policy makers on issues affecting the accounting industry. The AICPA is always trying to look out for and vouch for the CPAs… aside from the fact that they are the ones that make the CPA exam 🙁

State Board of Accountancy

Each state has their own State Board of Accountancy, and each of these boards make up the National Association of State Boards of Accountancy. State boards of accountancy are regulatory bodies that oversee and enforce the licensing and practice of certified public accountants (CPAs) within their respective states. They play a crucial role in ensuring the integrity, competency, and ethical conduct of accounting professionals.

State Boards are typically responsible for determining who is and is not eligible to sit for the CPA exam.

They are also responsible for setting ethical standards and CPE regulations. Maintaining both of these is essential to the professional integrity of that state’s practice.

It seems like the State Board is just NASBA on a smaller scale. They do the dirty work on a state by state basis while NASBA does it at the national level.

I certainly learned a lot looking into this and I hope I was able to provide some clarity for you as well! Thanks for reading and have a great weekend! 😊👋