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California CPA Magazine

The magazine is your backstage pass to exclusive interviews with industry leaders, as they share their invaluable wisdom and experiences.  But that's not all! We've got the latest updates on tax laws, financial regulations, accounting standards, and the game-changing technology that's reshaping the financial and California landscape. 

If you ask Andrea Cope if she has anything cooking, she literally might be. The 2023-24 chair of the CalCPA Education Foundation has a degree from the California Culinary Academy and worked at the Ritz-Carlton in Laguna Niguel after 15 years in the CPA profession, and ran her own catering business for a couple of years while getting back into public accounting.

Cope, a retired partner—Family Office for BPM LLP since 2022, has cooked up success as a CPA. Prior to joining BPM in 1998, she worked for various accounting firms, a business management firm and was assistant controller for the Houston Symphony.

An active member with CalCPA, Cope served as deputy executive officer for CalCPA (2018-19) and has served on various leadership positions with the organization, including San Francisco Chapter board member and president, CalCPA board member, CalCPA chair, PAC chair and a member of various conference planning committees.

Q: What do you find the most rewarding about the CPA profession?

A: The people and the opportunity to pivot in areas of expertise. I’ve met and worked with so many wonderful people during my career—staff, colleagues, clients and other professionals. It’s been fun being part of the team that surrounded our clients. The collaborative thinking and problem solving needed to help clients reach both their financial and personal goals. I adored all my staff over the years and wanted to do what I could to help them became the professional they strived to become.

As an active member of CalCPA, I’ve developed wonderful relationships with other CPAs up and down the state, across the country and in far-off places. Being a CPA has afforded me the opportunity to change direction in my area of expertise.

I’ve focused on the hospitality industry for years and then pivoted to the real estate industry. I was working with clients doing client accounting services before it was a popular service line. I’ve led a group of professionals working in the family office space. I couldn’t have been proficient in any of these areas without continuous learning. I’ve taken countless courses through the Education Foundation to upskill. I’ve been on many conference planning committees to help our members and participants stay on top of their industry expertise. I realized early on that I needed to be a continuous learner so I could address my clients’ concerns and be able to collaborate with my colleagues. 

Q: What advice do you have for younger professional or those thinking of entering the CPA profession?

A: Just do it! The profession offers so many opportunities from auditing, tax, client accounting services, forensics, litigation support, data analytics, industry specialties and more. You can work in public accounting, in industry, for a nonprofit organization or government. I tell students that getting your accounting degree and becoming a CPA will pretty much guarantee you will have a job for as long as you want one. I don’t think there are many professions that can offer as many opportunities as being a CPA has to offer.

Q: What were some of the biggest challenges you faced on your path to becoming a CPA and how did you overcome them?

A: The CPA Exam just about did me in! I took the exam during a time where it was offered two times a year, May and November. We took it in large convention halls with hundreds of other exam takers. Pretty intimating. I passed three of the four parts, but couldn’t get a passing score on FAR (Financial Accounting and Reporting). I was down to the last opportunity to pass the exam without losing my conditional credits. It was do or die time. I told my friends I’d see them in six months. I signed up for Becker Review, drove from Santa Barbara to Van Nuys every Saturday and Sunday for four to five months and studied like crazy. It was a joyous day when the envelope arrived in the mail with that passing grade!

Q: What attracted you to CalCPA and then CalCPA leadership?

A: Paul Southgate, a partner at Windes, invited me to my first CalCPA event in Long Beach back in the 1980s. As a brand-new staff member, you just said yes to partner invites. I enjoyed being introduced to other CalCPA members at the event and thought this would be a great organization to get to know.

Right after I joined BPM, one of the firm’s partners, Bill Schulte, was retiring and was a member of the San Francisco Chapter board. He asked if I would be interested in coming onto the board, and I said absolutely. Being a competitive person, I knew my goal was to be president of the chapter.

Once in that position, I was on Council and (then-CalCPA CEO) Loretta Doon tapped me on my shoulder—quite literally—and suggested I apply for a CalCPA Board position. The rest is history. It’s really been those personal relationships, someone saying, “Hey come with me to this CalCPA meeting” or “We think you have leadership potential,” that spurred my interest in CalCPA and has resulted in my various leadership positions.

A: My dad probably was my biggest inspiration as he was paying my college tuition and was concerned that I wouldn’t be able to support myself with an animal science degree. I was struggling with my grades (OK, I was having too much fun and not studying enough!) and my dad suggested I become a CPA. His best friend, Pete Fedderson, had a CPA firm in Encino and we talked for a long time about the benefits of being a CPA.

The mom of one of my best friends from high school, Gina Levy, was a CPA. Nella Ebert talked to both of us about being a CPA while raising a family. Nella had a home office before home offices were a thing. She was totally involved with her family and had a thriving practice. I made the decision to change my major to accounting and I’m so glad I did. Gina also became a CPA. I’m thankful that these folks took the time to let me know what an amazing career being a CPA could be.

Q: What was your first accounting job and how did you progress from there?

A: My first job in the accounting profession was for an independent bookkeeper in Van Nuys, Nora Barrett. This was in 1979 just before desktop computers came on the scene so everything was done manually. She was the bookkeeper for the restaurant at the Griffith Park Golf Course.

I remember handwriting checks, writing out deposit slips and entering all this information onto multicolumn green binder sheets. Once all the transitions were written on the pages, I had to run an adding machine tape of all the balances—and I just prayed my total came to zero. I got really fast on the adding machine!

My next job while in college was for Goodell & Co. in Sacramento. We had to keypunch all the transactions onto a yellow tape and send it off for processing. The processing company would send back the financials and we’d have to review for any errors, then send back a tape with any corrections. Fortunately, once I graduated and started at Windes, desktop computers were starting to be used more regularly. 

I remember the mainframe computer was housed in a huge glassed-in computer room, raised off the floor about 12 inches and fully air conditioned. Only the IT folks were allowed into that room. We started using accounting programs that made preparation of financials statements so much easier. It took the tax preparation technology a bit more time to catch up. Remember Computax? I’m thrilled the technology has evolved to cloud based so we can work anywhere, at any time.

Q: What do you see as the most pressing issues facing the profession?

A: We are focusing a lot of our attention on the pipeline. We have a dip in accounting graduates due to demographics and interest. CPAs and accountants don’t have thrilling drama shows like doctors and lawyers that we’ve watched since we were little kids. We still face the stereotype of being boring and sitting in a back office somewhere doing math all day long. 

As a profession, we need to dispel those stereotypes by getting into high schools and elementary schools highlighting the opportunities being a CPA can offer. If each of us took an interest in one young person and mentored them through the career decision making process and beyond, we’d have 45,000 new CPAs in California over the next few years.

The other issue I see is how do we encourage our mid-career professionals to upskill their knowledge, so they have the skill set to meet their clients’ demands. There is so much new technology, exciting practice areas, new accounting pronouncements and tax regulations that it can be overwhelming to learn and to embrace something new while managing your practice and family life. I’m excited about some of the new Education Foundation offerings that can be accessed anywhere, at any time. We are investing heavily in new courses that can help our members and other financial professionals meet the demand for these new skill sets.

A: I really like helping people and I love a sense of order. Give me a messy set of books and I’ll get it straightened out and put new processes and procedures in place so it’s easier to do in the future. I think getting rid of the clutter and streamlining processes helps everyone think better, which can lead to better decisions making processes. Sometimes it’s hard to figure out what you must stop doing so you can let the new and improved take hold.

The Education Foundation is going through that process with our course offerings. We really want to create “Super Fans” of everyone who interacts with CalCPA and the Education Foundation.

Our goal is to create first-in-class participation and engagement opportunities, while creating the highest level of consistency and value in all aspects of the member experience.

I want our members and customers to want to go to the next conference, spread the word about an awesome webcast they attended and get the on-demand education they need to solve a client’s problem. Lofty goals, but we are laser focused on getting there.

I’m thrilled to be chair of the Education Foundation so I can help our members and customers be what they strive to be.

The Right Ingredients

If you ask Andrea Cope if she has anything cooking, she literally might be. The 2023-24 chair of the CalCPA Education Foundation has a degree from the California Culinary Academy and has cooked up success as a CPA. 

The Right Ingredients: A Q&A With CalCPA Education Foundation Chair Andrea Cope, CPA

Diversity, equity and inclusion (DE&I) have become pivotal pillars in today’s corporate landscape, driving organizations to foster a more inclusive work environment. To better understand who our members are, how they feel their places of work demonstrate DE&I practices and what practices and career obstacles they may face, CalCPA conducted Stand Up and Be Counted: CalCPA DE&I Baseline Membership Survey 2022.

The results of the anonymous survey include a snapshot of members, overall comfort with workplace environments, specific practices and feedback on how CalCPA can better serve its members.

“We cannot build a strong and united community without acknowledging the unique perspectives and backgrounds of our members,” said David Neighbors, CPA, chair of the CalCPA Diversity, Equity and Inclusion Commission and Private Client Services Partner at BDO USA, LLP.

“This survey serves as a compass, guiding us toward a more equitable and connected future. By understanding the challenges our members face, we can actively work toward breaking down barriers and building bridges of understanding.”

Overall survey results reveal a substantial share of CalCPA members support DE&I efforts in their workplaces, both in terms of hiring practices and healthy workplace policies. Many companies and firms are reported to be applying good DE&I practices and there is evidence such practices are seen to be good for business. Many members of protected class communities also feel that where they work is safe and comfortable for them.

That said, as many as one in five employees have recently left a firm or company, many of whom encountered prejudicial behaviors.

Public accounting is the focus of nearly 60 percent of members, an additional 17 percent serve in business and industry roles and the remaining percentage is scattered across government, education, nonprofit and consulting functions, or are retired or students. As for career stage,  46 percent call themselves decision makers, 23 percent are mid-career professionals and 9 percent are emerging professionals.

CalCPA members overwhelmingly identify in traditional binary terms, with nearly equal proportions assigning themselves to male and female identities. “No binary” identification is just below 1 percent, and one in 13 declined to identify in some way. Small percentages say they are members of the LGBTQIA community (4 percent) or in a protected class (4 percent).

The survey also shows membership skews toward older brackets, as more than 50 percent are 55 or older. Approximately 18 percent of the membership is 45-55; 15 percent is 35-44; and only 14 percent of members are younger than 35 years.

Most survey respondents expressed positive views of their firm or company, or with CalCPA, with respect to DE&I, networking and mentoring opportunities.

While a substantial share of CalCPA members support DE&I efforts in their workplaces and many companies and firms are reported to be applying good DE&I practices, as many as one in five employees have recently left a firm or company, many of whom encountered prejudicial behaviors.

When asked if they experienced any DE&I obstacles in the workplace, 69 percent of the respondent said they have and the most often raised obstacles were being yelled at or demeaned by a manager or supervisor (15 percent), lack of recognition (13 percent) and failure to be promoted (12 percent).

CalCPA members were invited to share examples of experiences where their career was enhanced by exposure to diverse people or places. One in five opted to do so and of this group:

When it comes to leadership encouraging diversity in their firms or companies, survey respondents reported that leadership supported DE&I improvements to at least some degree.

Where specifics were provided members pointed to having teams, consultants or task forces in place, or having written hiring practices, guidelines and/or policies.

Career development plays a large role when it comes to recruiting and retaining talent, and when asked, “Do you feel your firm/company offers a career development path for advancement?”:

How CalCPA Can Support Members and Their DE&I Efforts

In a concluding question, survey respondents were asked how they would like to see CalCPA support them and DE&I efforts. Nearly 30 percent offered a response. Of those:

 and take advantage of the available news, resources and information regarding diversity, equity and inclusion, as well as find out how you can get involved in these efforts. Also, look for our diversity-focused courses at 

Survey Says

Take a sneak peek at some of the insights of our recent DE&I member survey to discover the pulse of our community on this important issue and how their workplaces demonstrate DE&I practices.

Change. It’s not just a word; it’s something that pushes us forward, reshapes our world and renews our spirits. Buckle up and hold tight because the future is exciting and coming at you fast!

The world is changing. Business, the CPA profession, you name it! And who else? That’s right—CalCPA. We’re not just adapting to change; we’re embracing it and doing it with flair.

Have you seen our new face? At our engaging August Council meeting, we pulled back the curtain on a brand overhaul. New logo, fresh color scheme, sleek website redesign and a relentless drive to support an evolving profession. Spotted it yet? Head to our website or flip through our magazine; you’ll see we’re dressing to impress.

But here’s the kicker: this isn’t just about slapping on some new paint and calling it a day. This is a total metamorphosis aimed at revolutionizing how we connect with you, our business professionals, and the consumers who depend on us.

We’re looking at the big picture and are bold in shaking things up. We’re crafting a customer experience that screams innovation, but preserves the trust and credibility that’s been at the heart of CalCPA for over 100 fantastic years.

Want a glimpse of the future? Our website’s new vibrant look shouts our brand promise: “The leadership the CPA profession needs for change and the knowledge and connections you need for what’s next.”

It’s sleek, streamlined, and packed with everything you need to ride the wave of change.

So, what are you waiting for? Dive into our new world at 

. It’s fresh, intuitive, and eager to get you dancing to the rhythm of change.

The future’s here, and it’s bursting with energy. CalCPA is on the move, and we want you to join us. Innovation catalysts, unite! It’s time to shake things up and dance into a bright and bold tomorrow. Are you in?

A Fresh Look

September 2023: A Fresh Look

In a bid to champion environmental responsibility, California is on the brink of setting new standards in sustainability disclosure requirements.

These rules, aiming to drive businesses toward a more sustainable future, are poised to outshine other proposals and set a new model for reporting of greenhouse gas emission data. But fear not, as we break down the California Climate Corporate Data Accountability Act, also known as SB 253, into digestible bits for a clearer understanding.

Introduced by Sen. Scott Wiener, SB 253 has been undergoing some tweaks to ensure its effectiveness. The latest development is a change in the timeline for reporting different types of emissions. Let’s delve into the nitty-gritty:

SB 253 stipulates that companies will start disclosing their Scope 1 and 2 emissions in 2026, followed by Scope 3 emissions in 2027. This shift in the reporting schedule aims to allow businesses more time to gear up for the process.

Public and private companies with annual revenue of at least $1 billion that operate within California are directly impacted by the reporting requirement. However, because of the inclusion of Scope 3 emissions, SB 253 also captures a much wider array of entities that do business with larger reporting businesses. So, whether it’s the local bakery or a giant tech company, they may be in a position of having to report emissions. 

And it’s not just about reporting—businesses will be required to provide assurance from an independent third-party auditor when they report their emissions data to the California Air Resources Board. This is where the expertise of the CPA profession, already trusted experts in the sustainability reporting and assurance space, will become key players in the implementation of SB 253.

As established providers of a myriad of financial and advisory services, including required audit services, to a wide spectrum of businesses, CPAs are well-positioned to provide assurance over GHG emissions.

Through these existing services, CPAs already have an intimate knowledge of a business and its processes. The CPA profession has extensive experience in developing methodologies to apply auditing and attestation standards—including sustainability information. Further, CPAs have the expertise to promote transparency and trustworthiness of the data being collected and shared with consumers and other decision-makers.

In the spirit of collaboration, CalCPA has engaged with the author and sponsors of SB 253 to highlight where the proposed legislative language may be inconsistent with existing professional standards and may benefit from additional clarity. By objectively providing input on the proposed policy, CalCPA has shaped the development of an effective and efficient greenhouse gas emission reporting framework.

And if California policy leaders choose to advance SB 253 into law, CalCPA’s efforts will help streamline implementation and compliance for impacted entities—including the professionals advising them—and ensure the public receives reliable, consistent and comparable information.

CalCPA comments sought to change a confusing word (“verification”) to a more relevant one (“assurance”) and make sure consistent and established standards are the bases of an engagement. Importantly, we emphasized that a CPA’s licensure requirements and strict adherence to professional standards and independence rules position the profession well to meet the need of reporting businesses and the public relying on reported data.

SB 253 has made its way through the Senate and is now awaiting its turn in the Assembly. The clock is ticking, with the deadline for the Legislature to pass SB 253 before the Sept. 14 deadline.

Last year a similar bill was barely defeated on the last night of the legislative session. This year things have changed. Federal action on similar policies have stalled—emboldening state policymakers to be leaders. Freshmen legislators who have campaigned on environmental action are now in the mix. And a governor looking for opportunities to increase his national profile could be eager to jump behind the first of its kind emission reporting framework.

How significant will SB 253 be for California’s businesses? How do its requirements stack up against potential federal regulations for publicly traded companies? And how will this impact reporting standards in other parts of the country? Stay tuned for updates as we unravel the impact of SB 253 and the role of the CPA in this rapidly emerging service area.

SB 253

In a bid to champion environmental responsibility, California is on the brink of setting new standards in sustainability disclosure requirements. 

California’s Push for Greener Business Practices 

A common issue arising in FTB audits—personal and corporate—is whether to grant a waiver of the statute of limitations at the request of a field auditor. The general rule is that the FTB has four years from the original due date or the date the return was filed to audit that return and issue any Notice of Proposed Assessment (NPA) (RTC sections 19057, 19066).

However, keep in mind the FTB statute of limitations independently remains open for six months after the expiration of a federal IRS statute waiver signed by the taxpayer (RTC 19065).

FTB’s Manual of Audit Procedures (MAP) makes clear to auditors that “waivers are not an acceptable substitute for prompt, timely audits” (MAP Section 4.1; MAP 4 SOL & WAIVERS; 

ftb.ca.gov/tax-pros/procedures/manual-of-audit-procedures/chapter-4.pdf

Further, FTB’s Audit Procedure regulation states that a taxpayer should have the “expectation” that a “resolution of the audit will be achieved within a two-year period” commencing with the date of the auditor’s initial contact (FTB Regulation 19032 (a)(2)). Further pressure results from FTB field auditors being instructed to complete cases and submit them for review by the Technical Resources Section at least six months before the statute of limitations expires (MAP Section 4.1).

Even with these clear directives regarding the timing and completion of audits, in the author’s experience, it is a rare FTB audit these days in which an auditor does not request at least one, and often multiple, wavers of the typical four-year statute. What are the considerations in deciding whether to grant or deny an auditor’s request for a statute waiver in a pending audit? The central question is: Is it in the client’s interest, or against the client’s interest, to sign the statute waiver requested by the auditor?

Here are some considerations for making that decision.

What are the likely consequences of not signing the requested waiver? 

Absent the waiver, the statute of limitations for FTB to issue any NPA will lapse for that tax year. Does this mean the auditor will essentially “throw together” and issue a timely NPA simply to protect potential revenue, even when not justified based on the current status of the audit? Does this mean the auditor will conclude that based upon the status of the audit, they do not have reasonable grounds to issue an NPA and will close the audit without assessing? Will the audit continue anyway for other years where there is still open statute, e.g., a three-year audit cycle?

There are no easy answers to these questions, which are entirely situational, based on the current status of the audit; the representative’s working relationship with the auditor and/or audit supervisor; the amount of the potential proposed assessment; and the client’s risk tolerance. 

What, if anything, does the client receive in exchange for signing the requested waiver?

 For instance, can an agreement be reached that this will be the only waiver request? Can an agreement be reached regarding the number of additional Information Document Requests (IDRs) forthcoming in the (now extended) audit? Can an agreement be reached regarding when the client will receive any potential audit closing letter or Audit Issue Presentation Sheets (AIPS), which details the rationale for any NPA?

Consider negotiating (or attempting to negotiate) the length of the waiver

. The FTB typically requests a statute waiver of one year (and if they want more, you likely can expect to see multiple requests). What about only granting a waiver through the end of the calendar year, which often turns out to be a period of about three months?

What about only agreeing to grant a waiver of six months? If the auditor is unwilling to negotiate, then you are back to the situation above involving the likely consequences of not signing the requested waiver.

Press the auditor, and get it in writing, for their reasons for the need for the requested waiver—or any waiver

. Remember, the FTB always has four years to audit, so why is any additional time needed? Two common responses from an auditor are (1) overall caseload and (2) more time is needed for the audit to be submitted and reviewed (i.e., the six-guideline above). But those are broad and general responses, so seek detail as to why audit goals in this specific case have not been achieved within the time limits discussed above in the statutes and the FTB’s own Audit Regulation.

Has the taxpayer in any way been responsible for a lack of audit progress? 

In fairness to the auditors, if a taxpayer is taking six months to respond to every IDR, the audit is going to move at an unnecessarily slow pace through no fault of the FTB. Similarly, has the taxpayer been unresponsive? If so, what is the potential to receive the 25 percent penalty in RTC Section 19133 for failure to furnishing information if the audit is closed too quickly?

 The current rate for personal income tax underpayments and overpayments is 3 percent. The current corporation underpayment rate is also 3 percent, and the current corporation overpayment rate is zero. In all fairness, that is cheap money and may be a reason for delaying an audit. But, the FTB’s interest dates for personal income tax and corporate underpayments automatically reset every six months, so watch for changes.

The FTB’s interest rates in the past have been as high as 18 percent (in 1982). Also, don’t forget that even if the FTB issues an NPA, no payment is required while a timely Protest of that NPA is pending (although interest continues to accrue).

Confirmation bias is the tendency of an individual to favor and process information that confirms or strengthens their existing beliefs. If you sense an auditor already has decided the case against you, there is no reason to give them additional time to further strengthen their case while interest continues to accrue. It is probably time to have the NPA issued, file a Protest and pick up the case at Protest with a different, fresh and hopefully less-biased audience—but, see time value of money, above.

Finally, while audits often can be contentious, unpleasant and seem personal, it does not have to be that way

. FTB auditors are tax professionals and deserve to be treated as professionals. There are many legitimate situations where an auditor will need an extension of the statute and will work with a taxpayer to achieve that end. In many cases, it is also in the interest of the taxpayer to extend the statute in some manner. On the other hand, you do not want to grant a one-year statute waiver only to find the auditor then turns to another case in their inventory with a shorter statute, only to return to your case nine months into the waiver period—often to seek another waiver.

California CPA Magazine

What's happening

The Right Ingredients

Survey Says

A Fresh Look

SB 253