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IQAB Mutual Recognition
Agreements (MRAs)
Determining Substantial Equivalency
Presented to the
IAAER Midyear Meeting
American Accounting Association
February 21, 2014
Ruben Davila, CPA, Esq.
Former Member, U.S. International Qualifications Appraisal Board
Professor of Clinical Accounting
University of Southern California
– Leventhal School of Accounting/
- Marshall School of Business
U.S International Qualifications
Appraisal Board (IQAB)
(Established early 1990s)
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Membership
NASBA – represents state boards of accountancy
AICPA – represents the accounting practitioner
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Role:
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Reviews accounting qualifications of professional
accounting organization in other countries as basis
for Mutual Reciprocity Agreements (MRAs)
Negotiates MRAs with foreign accounting
organizations.
Makes recommendations to adopt MRAs to state
boards of accountancy
MRAs grant vehicle to attain reciprocal practice
rights
Who is AICPA?

American Institute of CPAs
“The AICPA is the world’s largest member association representing
the accounting profession, with more than 394,000 members in 128
countries and more than a 125-year heritage of serving the public
interest. AICPA members represent many areas of practice, including
business and industry, public practice, government, education and
consulting. The AICPA sets ethical standards for the profession and
U.S. auditing standards for audits of private companies, nonprofit
organizations, federal, state and local governments. It develops and
grades the Uniform CPA Examination and offers specialty credentials
for CPAs who concentrate on personal financial planning; fraud and
forensics; business valuation; and information technology.”
Who is NASBA?
National Association of State Boards of
Accountancy:
 “Founded in 1908, NASBA has served as an association
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dedicated to enhancing the effectiveness of the country’s 55
state boards of accountancy for more than 100 years. As a
driving force within the accounting profession, NASBA
accomplishes its mission by creating a forum for accounting
regulators and practitioners to address issues relevant to the
viability of the accounting profession.”
Mission: “Enhance the effectiveness and advance the
common interests of the Boards of Accountancy… Public
Protection
Who is NASBA? Legal Authority
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Represents the interest of the state boards.
State boards have legal authority:
Legal Authority to set licensing standards for
CPAs
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Exam
Education
Experience
Legal to Regulate CPAs – individuals & firms
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Adopt professional standards
CPE requirements etc.
U.S. International Qualifications
Appraisal Board Members
NASBA
Charles H. Calhoun, DBA, CPA
Ruben Davila, CPA, Esq.
Jeffrey A. Leiserowitz, CPA
Antonio B. Smiley, CPA
Kathleen J. Smith, CPA

Staff Liaisons
Louise Haberman
Patricia Hartman
William Treacy, Chair
AICPA
Charles P. Heeter Jr., CPA, Vice-chair
Khaled Abdou, Ph.D., CFA, CPA
Lawrence J. Gramling, PhD, CPA
Jim Knafo, CA, CPA
Muhammad Padela, CPA, CFE, CFF,CITP
Paula B. Thomas, DBA, CPA
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Staff Liaison
Gordon Cherry
Suzanne Jolicoeur
What is a Mutual Recognition
Agreement (MRA)?
“A reciprocal agreement between governments
or non-governmental professional bodies that
indicates acceptance of the equivalence,
compatibility or acceptability of the other
jurisdiction’s regulatory standards for a
particular group of licensees.”
 Creates means to get audit practice rights in
other countries
U.S. International Qualifications
Standards – con’t.
U.S. IQAB uses the “three Es” to appraise the standards of a
foreign jurisdiction’s accountancy body against those that U.S.
CPA candidate must satisfy:
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Education:
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Baccalaureate or graduate degree, or its equivalent
At least 150 semester hours of quarter-hours equivalents in Boardrecognized courses
Examination: Pass the Uniform CPA Examination
Experience: Meet the work experience requirement
What MRAs are in place?
U.S. IQAB has effected MRAs with the following:
Under GATS:
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Institute of Chartered Accountants in Australia
Chartered Accountants Ireland
New Zealand Institute of Chartered Accountants
Hong Kong Institute of CPAs
Under NAFTA:
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Canadian Institute of Chartered Accountants
Instituto Mexicano de Contadores Publicos
Appraisals are in progress or have been considered from other countries
including the United Kingdom, Philippines, Zimbabwe, and India.
IQAB Issues: Substantial
Equivalence
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Substantial Equivalence:
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Education
Experience
Examination
Also: Continuing requirements, regulatory
systems.
Similar or Same Systems – Done
Variance in Systems
What is the International
Qualifications Examination (IQEX)?
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An examination that evaluates the professional
competence, from a U.S. perspective, of
accountants from foreign jurisdictions determined
by U.S. IQAB to have education, examination, and
experience standards substantially equivalent to
those of U.S. CPAs
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IQEX tests reciprocity applicants on their
knowledge of U.S. professional standards, taxation,
and business law.