bills, H.R. 7624 and S. 1853,in both Houses by members of both political parties. Your personal sponsorship would be especially appreciated. Cordially yours, WILLIAM P. STOWE, President. Hon. JOHN L. MCMILLAN, NORTH CAROLINA ASSOCIATION Chapel Hill, N.C., July 13, 1965. Chairman, House Committee on the District of Columbia, DEAR MR. CHAIRMAN: We have learned from our friends in the District of Columbia Institute of Certified Public Accountants that there has been referred to the House Committee on the District of Columbia of which you are chairman, H.R. 7624, a bill that would regulate the professional practice of certified public accountants in the District of Columbia. The bill would raise the standards for education and experience to be required of applicants for certification as CPA's. The existing statute on this subject in the District was adopted 42 years ago and its standards are now lower than those prescribed in a substantial majority of the States. For example, the present statute in the District does not even contain a firm requirement of a high school diploma; the Board of Accountancy may accept "sufficient commercial experience in accounting" as a substitute for high school graduation. In practice, the majority of candidates for certification in the District of Columbia have attained higher education and more experience than the existing law requires, but the lower standards of the existing law sometimes create problems for District CPA's when they seek reciprocity in other States, and make the District of Columbia a haven for applicants for certification who do not even intend to practice in the District. In some cases such applicants cannot satisfy the requirements of their own State. We in the North Carolina association believe that it is very much in the public interest to raise the educational and experience standards of the profession of certified public accounting, and we support the effort of the District of Columbia institute to bring the District legislation up to the standards that the great majority of States have already reached or are in the process of reaching. We hope, Mr. Chairman, that you will see fit to support the bill and to arrange for early hearings. Cordially yours, Hon. JOHN L. MCMILLAN, ROBERT LLOYD, President. THE OHIO SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS, Columbus, Ohio, June 8, 1965. Chairman, House Committee on the District of Columbia, House of Representatives, Washington, D.C. DEAR MR. MCMILLAN: We have been informed that a bill (H.R. 7624) to regulate the professional practice of certified public accountants in the District of Columbia has been referred to your committee. The District of Columbia Institute of Certified Public Accountants is supporting this legislation which would raise the standards for education and experience required of applicants for the CPA certificate. The present statute on this subject is more than 40 years old, and the standards now required of applicants are much lower than those required in most other jurisdictions. We, in the Ohio society, believe that it is in the public interest to raise educational and experience requirements in the District of Columbia to adequately meet the demands of investors, credit grantors, business management, and governmental agencies and to keep pace with the major States which have already provided for higher standards as a protection for the public. We hope that you will support this bill and arrange for early hearings. Sincerely, JOHN S. SCHOTT, President. OREGON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS, Hon. JOHN L. MCMILLAN, Chairman, Committee on the District of Columbia, DEAR SIR: We here in Oregon have just learned that your committee on the District of Columbia has been or shortly will be considering a bill that would regulate the professional practice of certified public accountants in the District of Columbia. As we understand it, the bill would raise the standards for education and experience to be required of all applicants for a license to practice as certified public accountants in the District of Columbia. We understand this bill is H.R. 7624 and a companion measure for it has been introduced in the Senate known as S, 1853. We practitioners in Oregon support wholeheartedly any measure which would attempt to raise the standards and qualifications of an applicant for license to practice as a certified public accountant. Throughout the years we have experienced problems with some of our fellow practitioners both CPA's and PA's.. Such problems are many times concerned with inadequate financial reporting and poor or slipshod workmanship which can give rise to some misleading information insofar as the public is concerned about either the qualifications of the practitioner or the affairs of the client upon whom he is reporting. We have discovered after thorough investigation that a practitioner who has come under criticism has been inadequately prepared, trained, or schooled and he lacks some of the background which is generally considered the minimum for practicing today. In many instances it has come to light that the practitioner became licensed without some of the background that most of our practitioners have. From this then we conclude that the licensing requirements while still rather high in Oregon leave something to be desired after the licensee begins his practice. We believe there will be more movement afoot to strengthen some of the areas of our licensing requirements in the near future. With the foregoing in mind, we wholeheartedly support any form of legislation which will improve the educational and experience requirements of one who applies for a license to practice as a certified public accountant anywhere in the Western World. We strongly support the effort of the District of Columbia Institute of Certified Public Accountants to help bring the District legislation up to the standards which we enjoy in our State and which most of the other States already have or are in the process of establishing. Our Oregon experience indicates that it is definitely in the interest of the public and the practitioner to have the licensing requirements for the qualification of certified public accountant at the highest level possible so that when he begins his practice, his career will start from the broad base he has had to meet. We sincerely hope that you will support this measure which will bring the licensing requirements in the District of Columbia up to the standards now held by most of the other States of the Union. Sincerely yours, GORDON R. JACOBSON, President. FLORENCE, S.C., June 8, 1965. Mr. JOHN L. MCMILLAN, Chairman, Committee on the District of Columbia, DEAR MR. MCMILLAN: For the past several years the American Institute of Certified Public Accountants, through the State societies of CPA's, has tried to raise the standards for education and professional proficiency. In view of the above, it has come to my attention that the certified public accountants in the District of Columbia are trying to accomplish the above through H.R. 7624. As chairman of the House committee to which this bill has been referred, I know that you will give this bill your considered attention and I would like to ask your support, if after you study the bill, you consider it in the public interest. With kindest personal regards, I remain, Yours truly, ELMER E. CHASTEEN, CPA. THE TENNESSEE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS, Mr. JOHN L. MCMILLAN, Chairman, Committee on the District of Columbia, DEAR MR. CHAIRMAN: Our friends in the District of Columbia Institute of Certified Public Accountants have advised us that H.R. 7624 has been referred' to the House Committee on the District of Columbia, of which you are chairman. This bill would regulate the professional practice of certified public accountants in the District of Columbia, and raise the standards for education and experience to be required of applicants for certification as CPA's. The existing statute on this subject in the District was adopted 42 years ago and its standards are now lower than those prescribed in a substantial majority' of the States. For example, the present statute in the District does not even contain a firm requirement of a high school diploma; the Board of Accountancy. may accept "sufficient commercial experience in accounting" as a substitute for high school graduation. In practice, the majority of candidates for certification in the District of Columbia have attained higher education and more experience than the existing law requires, but the lower standards of the existing law sometimes create problems for District CPA's when they seek reciprocity in other States, and make the District of Columbia a haven for applicants for certification who do not even intend, to practice in the District. In some cases such applicants cannot satisfy the requirements of their own State. The members of the Tennessee society believe that it is very much in the public interest to raise the educational and experience standards of the profession of certified public accounting, and we support the effort of the District of Columbia institute to bring the District legislation up to the standards that the great majority of States have already reached, or are in the process of reaching. Your support of the bill and efforts in arranging for early hearings, Mr. Chairman, will be appreciated by all of us. Very truly yours, JOSEPH F. DECOSIMO, President. VERMONT SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS, Congressman JOHN L. MCMILLAN, DEAR CONGRESSMAN MCMILLAN: We understand from our friends in the District of Columbia Institute of Certified Public Accountants that the Senate Committee on the District of Columbia is about to consider Senate bill 1853 dealing with the regulation of professional practice of certified public accountants in the District. I am enclosing a copy of a letter to Senator Bible indicating that we approve of this legislation and urging that you support it in its hearings. As I stated in a letter to Senator Bible we in Vermont are in the process of formulating legislation to accomplish the same aims since our statute corresponds at the moment very similarly to the District of Columbia present legislation. As a practical matter most candidates for a certification are considerably more educated and experienced than the law requires and we would like to conform the two matters of education requirements and actual fact. Please give this bill your careful consideration. Very truly yours, ROBERT A. BOUCHER, President. VERMONT SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS, Hon. ALAN BIBLE, Chairman, Committee on the District of Columbia, DEAR Mr. CHAIRMAN: Robert Bernstein, president of the District of Columbia Institute of Certified Public Accountants, has written me concerning Senate bill 1853 dealing with the regulation of professional practice of certified public accountants in the District of Columbia. The bill is intended to raise the standards of education and experience of applicants for certification and is in line with the practical facts of personnel now entering the field in most States. According to Mr. Bernstein the existing statute on the subject was adopted 42 years ago and its standards are now lower than those prescribed in a substantial majority of the States including our own State of Vermont. We, however, are also in the process of formulating the necessary legislation for introduction to accomplish the same aims. The Vermont society members believe that it is very much in the public interest to raise the educational and experience standards of the profession and we support the efforts of the District of Columbia institute to bring their legislation up to these standards. We would appreciate your support of this legislation and the provision for early hearings on its passage. I am also enclosing a copy of a letter to our own Senator Prouty, a member of your committee, urging that he support this legislation. Very truly yours, ROBERT A. BOUCHER, President. THE VIRGINIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS, Congressman JOHN L. MCMILLAN, Chairman, Committee on the District of Columbia, Richmond, Va., June 7, 1965. DEAR CONGRESSMAN MCMILLAN: We have recently been informed that H.R. 7624 has been referred to the Committee on the District of Columbia. It is my understanding that this bill, introduced to regulate the practice of certified public accountants in the District of Columbia, is primarily intended to effect higher standards for education and experience of accountants applying for certification. The dynamic nature of business and our economy today call for highly qualified accountants, and I do not believe that legislation enacted 42 years ago on this subject is adequate at this time. Also, because other States have laws with higher standards, reciprocity is not readily available to CPA's of the District. Improvements of this nature have been made in Virginia in recent years, and in many other States as well. We would like to lend our support to the efforts of the District of Columbia institute to increase the standards of CPA's in the District. In view of your position as chairman of the House Committee on the District of Columbia, we urge your support in this legislation, and request that you give consideration to cosponsoring the bill, thereby enhancing the prospects for its success. Very truly yours, ROBERT T. BOSSERMAN, President. Mr. ABERNETHY. Unless there are further questions, or something else you wish to present, we shall stand in recess until further call. (Whereupon, at 12:05 p.m., the hearing was recessed.) APPENDIX DISTRICT OF COLUMBIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS, Washington, D.C., January 21, 1966. Hon. THOMAS G. ABERNETHY, Chairman, Subcommittee No. 2, Committee on District of Columbia, DEAR MR. CHAIRMAN: Representatives of the District of Columbia Institute of Certified Public Accountants have conferred with representatives of the General Accounting Office to discuss the amendments in the provisions of H. R. 7624, a bill that would provide for the regulation of the professional practice of certified public accountants in the District of Columbia, that were proposed by the General Accounting Office in the Comptroller General's letter of June 17, 1965. I am glad to report that we have agreed to join in recommending to you that the amendments listed below be made in the provisions of H. R. 7624 in lieu of the amendments discussed in the Comptroller General's letter of June 17. We understand that the Comptroller General will also write you to this effect. We propose the following amendments: 1. On page 11, delete lines 1 through 5 and substitute the following: "with a major in accounting satisfactory to the Board, or what the Board determines to be substantially the equivalent thereof, and". 2. On page 11, in line 18, delete the word "unanimous." 3. On page 12, in line 1, after the words "or (2)" insert the following: "in a combination satisfactory to the Board of the experience described in (1) above together with auditing the books and accounts or activities of three or more governmental agencies or distinct organizational units in accordance with generally accepted auditing standards and reporting on their operations to a third party, to the Congress, or to a State legislature; or (3)". 4. On page 12, in line 15, insert "(d)" at the beginning of the paragraph. My associates and I deeply appreciate the consideration shown us by you and the members of the subcommittee. Sincerely yours, ROBERT BERNSTEIN, President. COMPTROLLER GENERAL OF THE UNITED STATES, B-149528 Hon. THOMAS G. ABERNETHY, Chairman, Subcommittee No. 2, Committee on the District of Columbia, House of Representatives. DEAR MR. CHAIRMAN: At the hearings before your Subcommittee No. 2 of the House Committee on the District of Columbia on January 19, 1966, on H. R. 7624 you requested that representatives of the General Accounting Office and the District of Columbia Institute of Certified Public Accountants get together and consider the changes in H.R. 7624 recommended in our letter of June 17, 1965, to the chairman of the House Committee on the District of Columbia and in our testimony before your subcommittee. As a result of the meetings between such representatives, it has been agreed that the following amendments to H.R. 7624 will be satisfactory to both the General Accounting Office and the District of Columbia Institute of Certified Public Accountants: 1. On page 11, delete lines 1 through 5 and substitute the following: "with a major in accounting satisfactory to the Board, or what the Board determines to be substantially the equivalent thereof, and". 2. On page 11, in line 18, delete the word "unanimous." 3. On page 12, in line 1, after the words "or (2)" insert the following: "in a combination satisfactory to the Board of the experience described in |