A Review of the Center for Plain English Accounting (CPEA)
Do you ever need a heavy-weight to assist you with a complex accounting issue? Or do you ever wonder how you’ll ever keep up with all the new FASB and AICPA standards? The Center for Plain English Accounting (CPEA) might be your answer.
Once I was working with another partner to resolve a nonprofit accounting issue. He had one opinion and I had another. Both were logical. Each appeared to be possible. But we needed a single answer. What did we do? We submitted our question to the CPEA. Within twenty-four hours we had an answer–in writing. (I would say who was right but I might embarrass myself.) And with it, we documented our consultation per our firm’s quality management policy. If the issue comes up in peer review, we have a solid answer for our position.
Below I provide you with a review of the CPEA and whether the annual dues are worthwhile.
Why Join the Center for Plain English Accounting?
My former firm (I’m retired now) joined the CPEA about ten years ago. What led to that decision? We had used the free AICPA Hotline service for years, and the experience was positive. But as you may know, the AICPA Hotline does not offer written responses. I would send the Hotline an email with an inquiry, and the AICPA would call me with an answer, usually within 24 hours. I would document that discussion in my engagement file. But, in the back of my mind, I always longed for a written response. Why? These were usually thorny, high-risk issues. And I wanted black-and-white written answers. Something I could bank on. This is part of what the CPEA does: they provide written answers to technical questions.
Center for Plain English Accounting Mission
The CPEA provides other services as well.
As a member, you receive a monthly report covering a variety of accounting and auditing issues. You also receive emails with alerts and special reports about hot-topic issues. These technical reports and alerts are accessible online, so you have a library of past articles to assist you.
Additionally, the CPEA offers CPE at reasonable rates. These are online sessions, though they do offer an in-house option.
In short, the CPEA provides information about evolving technical issues and answers to specific accounting and auditing questions.
I have found their staff to be accessible and easy to work with. They are some of the best in the business.
Here’s an excerpt from their website regarding what they do:
The Center for Plain English Accounting (CPEA) is the AICPA’s national A&A resource center, sponsored by the Private Companies Practice Section. The CPEA’s team of experts assist members with accounting, auditing, attest, review, and compilation needs by sharing technical advice and guidance. The CPEA’s straight-forward and clear style of writing and speaking gives practitioners the opportunity to understand the applicability of the professional literature when preparing financial statements and when auditing, reviewing, and compiling those financial statements.
Cost of CPEA Membership
Full Membership
What’s the cost of joining the CPEA? $1,875 per year for full membership. See benefits here. I used to pose several questions a year (when I was with my former firm) and received timely written responses–every time.
Most of the time, there is no additional fee for questions when the full membership option is in use, unless it’s a very complex and time-consuming issue. (In all the times I inquired of them, they never charged an additional fee.)
For firms that don’t have a national office (and most don’t), this is an excellent solution.
There are also smaller firm options.
Smaller-Firm Membership
If you have five or fewer professionals, the annual fee is $825. (Written responses to technical questions are $350 per inquiry.) See benefits here.
Sole Practitioner Membership
If you are a sole practitioner, the annual fee is $475. (Written responses to technical questions are $350 per inquiry.) See benefits here.
Other Memberships
In addition to the above, they offer memberships to management accountants and academia.
Submitting Questions to the CPEA
How do you submit your questions to the CPEA? With an online form such as the following:
Worth the Money?
For me, the cost of membership has been worth the money. If your firm desires to keep up with evolving standards and needs written answers to technical questions, the CPEA is an excellent choice.
The CPEA’s email address is [email protected].
Related
Glad to assist John.
Thanks Charles!
Thanks Greg for your comment.
Good article. I have never heard of this entity. Thanks!