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SPONSOR: |
Coll |
DATE TYPED: |
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HB |
HJM 86 |
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SHORT TITLE: |
CPA Conflict of Interest Standards |
SB |
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ANALYST: |
Patel |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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See Narrative |
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(Parenthesis
( ) Indicate Expenditure Decreases)
LFC file
Responses
Received From
Office
of the State Auditor
SUMMARY
Synopsis
of Bill
The House Joint Memorial (HJM) 86 requested
the State Auditor work with the New Mexico Public Accountancy Board (Board),
the New Mexico Society of Public Accountants (NMSPA), and the New Mexico
Society of Certified Public Accountants (NMSCPA) to study the current ethical
and conflict of interest standards for public accountants, and the need, if
any, to revise those standards and report findings and recommendations, if any,
to the second session of the forty-sixth legislature. HJM 86 requires the performance audit staff
of the legislative finance committee (LFC) assist the State Auditor to study
the conflict of interest issue.
Significant
Issues
House Joint Memorial 76, Laws of 2002 requested
an aggressive application of public accountancy regulations and standards. The
task force comprised of the Board, the State Auditor, NMSCPA, NMSPA, LFC and
the department of finance and administration concluded:
HJM 86 follows up on the work done previously
under HJM 76 (Laws of 2002) and according to the State Auditor “ out of concern
regarding public reliance on expert and professional audit opinions of public
accountants related to those governmental audits and audits of private businesses
not covered by the Sabranes-Oxley Act of 2002, the State Auditor is agreeable
to the idea of facilitating the process as described by the proposed House
Joint Memorial 86.”
FISCAL IMPLICATIONS
House Joint Memorial
(HJM) 86 does not contain an appropriation.
MP/yr/njw