Capitol's newest CPA: CalCPA member Fiona Ma elected to Assembly

California CPA, July, 2006 by Bruce C. Allen

The June primaries yielded profession when Fiona Ma, a member of the City and County of San Francisco Board of Supervisors and CalCPA, received the Democratic nomination to replace termed out Assembly Member Leland Yee.

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Her primary victory assures that Ma will replace Yee when the Legislature reconvenes in January.

Ma is a CPA with a lifetime of commitment to public service and Democratic causes. Her rise to professional and political success is the essential story of America.

She was born in New York to immigrant parents. Her father was an engineer and her mother was a high school teacher. After receiving a bachelor's degree in accounting from the Rochester Institute of Technology in New York, Ma moved west and earned a master's degree in taxation from Golden Gate University in San Francisco and an MBA from Pepperdine University.

In 1995, she accepted a position as district representative to former State Senate President Pro Tempore John Burton and helped constituents deal with vexing issues involving licensing, job training, tax issues, unemployment, and Medi-Cal. Among her accomplishments, Ma helped thousands of low income senior and disabled homeowners and renters claim refunds from the state of California.

Prior to that position, Ma had been involved in a variety of community activities, including volunteer food bank coordinator for St. Johns Presbyterian Church and assistant volleyball and basketball coach at Holy Name School.

Ma also was the founder and president of the Westside Chinese Democratic Club and a board member of the National Women's Political Caucus (San Francisco Chapter).

She will become the second CPA in the Legislature after the November elections, joining Assembly Member Roger Niello, CPA (R-Fair Oaks). CalCPA is looking forward to the presence of two CPAs in the Assembly.

Client Confidentiality Interpretations Coming Soon

Business and Professions Code Sec. 5063.3 and Rule 54.1, with some exemptions (such as an official inquiry from the federal or state government, response to subpoena, etc.), prohibits the disclosure of confidential client information without the client's advance written permission.

There is an exemption to allow for professional consultation with another licensee. CPAs need to comply with these requirements and ensure they are protecting themselves and their clients.

The California Board of Accountancy is preparing answers to frequently asked questions that are expected to be discussed at its July meeting and then posted on its website.

The CBA will advise that if a CPA uses an external service provider that is a separate legal entity to process confidential information such as tax returns, written permission must be obtained from the client in advance. The CBA notes that permission may be in the form of a signed engagement letter.

Resolving problems with tax or accounting software may require disclosure of some confidential client information to an external technician or software vendor. Here, the CPA also may need the client's permission.

CalCPA has requested that its Committee on Taxation review the draft questions and answers prepared by CBA staff to ensure that they are consistent with law and practice.

The full text of the statutes and regulations also may be found on the CBA website, www.dca.ca.gov/cba.

Business Valuation Standards Exposure Draft Update

While no official release date has been announced, it is rumored that the AICPA's new draft of proposed business valuation standards may be released in July.

In 2005, California practitioners launched an aggressive campaign to have the proposed standards revised to eliminate costly and unnecessary application to engagements beyond business valuations. In fact, CalCPA Council is on record as opposing the inclusion of tax in the standards.

With the upcoming re-release, the proposed standards will have been rewritten, but CPAs should carefully read the draft as soon as it is released because of their potential impact on all engagements, including estate planning and tax.

The new draft standards will have an abbreviated exposure period since it is the second exposure. Comments will have to be received within 60 days from the release date.

CPA-PAC Gives You a More Powerful Voice

CPA-PAC is CalCPA's independent, nonprofit political action committee that identifies and supports pro-CPA, pro-business candidates, regardless of political party, who have demonstrated the skill and leadership necessary to fuel a pro-business climate in California.

While each CPA represents an important voice in the profession, the strength of the collective voice speaks louder than one individual. And that's where CPA-PAC comes in.

A successful PAC brings individuals together, ideologically and financially, to channel their voices and political clout to strengthen the political process and ensure their message is delivered.

The stronger CPA-PAC becomes--through increased membership and contributions--the greater our chances for effecting positive, pro-CPA change in California's political climate.