[matt]

I live in MA and am preparing to sit for the CPA exam.

I have an MBA and am currently taking a few accounting classes to qualify to sit and earn a non-reporting license. I’m 27 and have worked in corporate accounting my entire career.

I’ve read a dizzying amount of information about non-reporting CPAs and some sources contradict others. I know that there are certain rights that a reporting CPA has that a non-reporting CPA doesn’t have regarding signing off on audits, which I never intend to do. I know that I’ll never be able to sign-off on an audit, but will I be able to be a CFO of a publicly traded company (ie: sign off financial statements)? Will I be able to open my own tax/advising firm? Would I be able to market myself to employers as a CPA?

Thanks in advance for the help!

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[Getting a CPA]

I don't exactly understand your question about reporting vs. non-reporting, but If you are a CFO of a public company or a tax/advisory guru, why would you not want to be a licensed CPA who has the added ability to sign-off on audit reports?

I plan to stay in an IT/business environment, and help strengthen financial systems of companies, or even forensic IT/accounting, but I think I would still want all the privileges of a licensed CPA…

And there are no stupid questions, only stupid managing partners of Big 4 LA firms who engage in insider trading 🙂

[matt]

Sorry – should have been more clear. I'm trying to fully understand the line between a “reporting” and “non-reporting”.

I know that non-reporting can't sign off on an audit. But does that mean a non-reporting can't be a CFO of a publicly traded firm because the CFO would need to sign the financial statements as a SOX requirement?

Basically – is the only drawback to being a non-reporting CPA the lack of signing an audit?

Also – Do non-reporting CPAs in MA have to do CPE? I couldn't find an answer to that anywhere.

FAR: 89
BEC: 88
REG: 81
AUD: 76

CPAexcel, NINJA 10 point combo, & NINJA MCQ

"Pain is temporary, it may last for a minute, or an hour, or a day, or even a year...but eventually it will subside and something else will take its place. If I quit however, it will last forever."

[HighMileageDude]

Non-reporting CPAs still have to do CPE.

“If the candidate has no CPA experience or no report (attest) experience in his/her public accounting experience, the privileges of their license will be restricted to all accounting services, except issuing reports on financial statements. This restriction is designated as a non reporting license, but only the Board and the non reporting licensee will be aware of this restriction unless a member of the public were to inquire. ” – https://www.mass.gov/ocabr/licensee/dpl-boards/pa/faqs.html

So a MA non-reporting license is everything a real license to the public is, (it's listed the same as a regular CPA license on MA's board website), just that you CANT issue reports on financial statements.

Reciprocity is possible with a non-reporting, at least in Colorado.

[matt]

And that is where I need to ask the dumb question – what is the definition of “issuing reports on financial statements”? I always have assumed that meant to sign off on an audit and was another way of saying “attest”.

However, someone I work with (who is a CPA) said they thought that included opening your own practice or being a CFO that signs off on financial statements for a SOX control.

FAR: 89
BEC: 88
REG: 81
AUD: 76

CPAexcel, NINJA 10 point combo, & NINJA MCQ

"Pain is temporary, it may last for a minute, or an hour, or a day, or even a year...but eventually it will subside and something else will take its place. If I quit however, it will last forever."

[Anonymous]

Issuing reports = signing off on an audit / review

“Signing-off” is a different term for public accounting vs industry. Signing off on FS as a CFO really means management review / certification of the FS. Not the same as “issuing reports on financial statements”

Non-reporting license = cannot sign an audit report

[neika822]

Yes, you cannot “sign” an audit report, as in, if you're an auditor in public accounting and auditing a company, you can't sign the report that is issued by the accounting firm.

I'm not so sure about taxes – if you can't sign a tax return in a public accounting firm? My boss said no, but I've never read that anywhere. So I'm not so sure about opening your own tax/consulting firm.

You can hold yourself out as a CPA unless someone asks you if it's non-reporting.

Good luck with your CPA studies! I'm going for the non-reporting license in MA as well.

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[mla1169]

Getting a CPA, a CFO would never be in the position to sign off on financial reports. No potential creditor, investor, or agency is going to accept financial statements that were signed off on internally. A CFO would be signing a management representation letter which is fine with a non reporting license. Same thing goes for a tax guru/consultant, they aren't in a position to sign off on financial statements. I am an accounting manager with a non reporting license in MA. For most controller or management jobs listed they will claim they want someone with big 4 experience, but I've found that is never a hard and fast job requisite. The fact that I've worked in industry for over 20 years more than compensated for my lack of publlc experience.

OP the only time you even have to acknowledge that your license is non reporting is if a client were to ask you to review or audit their financials. Other than that you may hold yourself out as any other licensed CPA.

And yes the CPEs are definately still required, which is what I am working on this morning!

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[Jade CPA-to-be]

i think you can provide tax services and sign tax returns with non-reporting license. you just can not provide attestation service ( ie audit or review) and sign the financials. If you want to open your own business only do taxes, you sure can with non-reporting license. someone corrects me if i am wrong.

CPA Licensed in California- Class of 2013

[matt]

Thank you everyone for clarifying!

FAR: 89
BEC: 88
REG: 81
AUD: 76

CPAexcel, NINJA 10 point combo, & NINJA MCQ

"Pain is temporary, it may last for a minute, or an hour, or a day, or even a year...but eventually it will subside and something else will take its place. If I quit however, it will last forever."

[jhawkins1010]

Is this reporting vs non-reporting distinction something specific to Massachusetts?

[Liss, Master of Coin]

Hi everyone!

I am hoping someone can help me.

I just passed the CPA Exams; under CA, where I live and work.

The good news is my scores won’t expire. Bad news is, CA requires that I work under a currently active licensed CA CPA.

This is where my problems begin. No one in my company is a CPA, let alone a currently active licensed CA CPA.

I thought transferring my scores to MA for their Non-Reporting License was an option.

I was reading up on it today, here:

https://www.mass.gov/ocabr/docs/dpl/boards/pa/apnonrep.pdf

#4 has me worried. It sounds like I’d need a CPA as a supervisor for this as well. Does anyone know if I’m understanding that correctly?

Also, I have my MBA in Finance. I thought that would be sufficient, but reading about the education requirements has me worried. It mentions a “graduate degree in accounting, business administration or law,” it does not mention Finance. Does anyone know if my MBA in Finance would be accepted?

Thanks in advance!

CPA (MA, Non-Reporting)

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@liss_ will_be_a_CA_CPA I am applying for MA non-reporting also. Isn't that your MBA can count as business administration? If you do have graduate degree, then you don't need any work experience, thus, no need that your boss is a CPA. Hopefully it helps.

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