NH Accountancy Board Looks to Expand

By David Darman on Monday, May 12, 2003.

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While agencies throughout state government are looking to cut their budgets, one wants to expand.

It is the New Hampshire Board of Accountancy.

They oversee all the Certified Public Accountants in New Hampshire.

Some 1,500 candidates have taken the CPA exam in the past year, up from 500 just two years ago.

Some come from as far as India.
The reason: New Hampshire CPA exam requires fewer qualifications than most other states.

NHPRï¿½s David Darman has more.

The day before the start of the latest CPA exam, about 200 candidates sat in the Raddison Hotelï¿½s ballroom in Merrimack.

Louise Macmillan, executive director of the New Hampshire Accountancy Board, stood before them.
27 351 please listen. Your candidate id number is very important. That is how you are known. Be very careful not to transpose the numbers. Make sure that the number is on every piece of exam material that you use or that you turn in. 27 410

MacMillanï¿½s audience has come from near and far.

Some from places like East Asia, Western Europe, and the Caribbean.

Rakesh Puri has traveled to New Hampshire from Bombay, India.

Puri says heï¿½s taking New Hampshireï¿½s CPA exam because he works for an American multi-national corporation.

Therefore, he has to know Generally Accepted Accounting Principles, or GAAP.
30 115 in fact since America dominates in business their word is the final word. And a lot of companies, they are using gaap of America,ï¿½. Its most acceptable in the better part of the world, u.s. gaap. 30 139

The foreign candidates who pass the CPA exam in New Hampshire or any other state can achieve great prestige back home.

And many candidates come to New Hampshire because the state requires only a bachelorï¿½s degree to take the exam.

Most other states require additional education.

Francesco Vasami is an Italian who works in Germany as an auditor.

He says New Hampshireï¿½s lax requirements helped him determine where he would take the exam.
32 305ï¿½, My second choice would have been Illinois, and, at the end maybe I would have had enough credits even for there, but I didnï¿½t know it before, and I didnï¿½t want to apply to ten different state boards. 32 319 and here I was quite sure to reach themï¿½

More than 40 states now require more education.

In fact, the American Institute of Public Accountants recommends what is called the ï¿½150 Hour Ruleï¿½.

Bea Sanders is the Instituteï¿½s Director of Academic and Career Development.
08 104 the reason we use the term a hundred and fifty hours is a little bit of anomaly is that originally it was considered a 5 year program. It would be a bachelorï¿½s degree plus the additional credits for a five year program. But in reality, students tend to go to school year round. So, they could conceivably acquire 150 hours, five years of education, if you will, in less than five years. 08 132

Sanders says the rule was designed to make sure accounting students get a well rounded education in liberal arts and business.

She says there is no data yet to prove that the goal has been achieved.

But Sanders says there is anecdotal evidence that students who get the extra training are better prepared for the business world.
11 101 ï¿½Theyï¿½re more mature, obviously. Theyï¿½ve had an additional year of education. And most of that additional year has been at the graduate level, and graduate level study is different than undergraduate study. Its more independent, much more intensive.

But New Hampshire officials say thereï¿½s no evidence that the 150 hour rule is necessary.

Louise MacMillan of the New Hampshire Accountancy Board says NHï¿½s test results are in the top 25 percent nationwide.
18 16 we look at that and we feel, why do we need 150 up front, when a bachelorï¿½s degree with a concentration in accounting proves that these people can take this exam and pass it, just as well as the people with the masters. 18 32

New Hampshireï¿½s stubborn stand against Rule 150 has helped fuel the growth in test takers.

And the numbers have grown through word of mouth.
And officials say the state gains a bit financially from the candidateï¿½s registration fees.

First time candidates pay 275 dollars to take the test.

Hotels and restaurants benefit, too.

Some out-of-towners need a place to stay during the 2 day event.

Louise MacMillan says sheï¿½s asked the legislature for additional staff to handle the increase in test takers.

1500 people have taken the exam in the past year.

She says that number of test candidates has been too much for her and co-worker to handle.
23 34 up until six months ago, it was lorraine and i. And lorraineï¿½s been there 15 years and Iï¿½ve been there 17 years. You know we started together, basically, the two of us, and over the years weï¿½ve handled the influx, but these last two exams have just been exhausting... 23 100

MacMillan is hoping to have more staff in place before the next CPA exam in November.

Once staffing is settled, the Accountancy Board will have to figure out personnel needs for next year.

Thatï¿½s because the CPA exam is scheduled to become computerized beginning next April.
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